Employer Kiwisaver contributions are taxed
It has always surprised me why the Government, which wants to encourage savings, tax Employer Kiwisaver Contributions, but they do. It would be such a simple change to remove the ESCT Tax.
ESCT stands Employer Superannuation Contribution Tax and the rate varies based on your annual income. Once a year we have to check you are on the right rate and update it if required. This is done for the first pay of the new tax year, April.
You can read more about the Tax HERE!
Current rates are below,
| Maximum Income Level | ESCT Rate |
| 16,800 | 10.5% |
| 57,600 | 17.5% |
| 84,000 | 30% |
| 216,000 | 33% |
| If greater than above | 39% |
Example, if your annual income is greater than 57,600 then you move to the next threshold and pay tax at 30% provided your annual income is less than 84,000.