Charities and tax-exempt organisations with paid employees will receive the KiwiSaver employer tax credit, Acting Community and Voluntary Sector Minister Rick Barker says.
"The KiwiSaver employer tax credit of $20 per week per employee is offset against PAYE payments, and therefore charities who are income tax-exempt will still receive the tax credit," said Rick Barker.
"For the 2008 year, the KiwiSaver tax credit will fully cover the cost of the employer contribution for all employees earning gross salaries of up to $104,000.
"The compulsory employer contribution will be phased in over time to allow employers to prepare."
"The KiwiSaver policy is great for people who work for charities. By joining KiwiSaver, they will be able to grow their savings and build security for their future.
“The Labour-led government is committed to building strong, sustainable and connected communities. The KiwiSaver employer tax credit gives charities the confidence they need to continue their great work in our communities," said Rick Barker.
Contact: Donovan Ryan: 04 471 9556 or 021 2279556