Home' DEMO : BNZ KiwiSaver Scheme Investment Statement Contents Payment
If your request for an early withdrawal is approved, you will normally receive the amount requested
within ten business days after approval.
If you request a withdrawal after your Qualifying Age, you will normally receive the amount requested
within fifteen business days after we receive your withdrawal request.
If your request is for a full withdrawal and you're owed a PIE tax credit on the Units redeemed, the
credit will be paid to you when you withdraw.
The value of your investments will generally be determined by reference to the Unit Price applying
on the business day after which your withdrawal request is approved or accepted. This will generally
be the day on which your withdrawal request is approved. Please note that the Unit Price may go
up or down between the date on which you submit your withdrawal request, the date on which it is
approved or received, and the date on which the relevant Units are actually redeemed.
Deferral of Payments
Subject to the requirements of the KiwiSaver Act, if we decide at any time that to allow a withdrawal
or transfer from the BNZ KiwiSaver Scheme would not be in the best interests of the Members then
we may delay paying withdrawals from the BNZ KiwiSaver Scheme. Any such deferral cannot exceed
a period of 10 Business Days without the prior written approval of the Trustee. In the normal course
of events such delays may occur, for example, following the end of an income tax period, while we
finalise our tax calculations for the BNZ KiwiSaver Scheme. Please also see "Liquidity risk" on
page 48 for more information.
Not all investments required to satisfy your withdrawal request may be sold on the same day.
Proceeds of any redemption may be held in a suspense account in the name of the Trustee or its
nominee until such point sufficient investments have been sold to satisfy your withdrawal request in
full. Please note that the length of time your funds are held in this suspense account may affect the
amount you receive in satisfaction of your withdrawal request.
Tax affects the returns you receive from the BNZ KiwiSaver Scheme. We have provided a general
summary of the New Zealand tax implications of investing in the BNZ KiwiSaver Scheme below.
The following information is based on our understanding of taxation law applicable as at the date of
this Investment Statement and is intended solely as a guide. Tax legislation, its interpretation and the
rates and basis of taxation are subject to change.
For tax advice relating to your specific circumstances, we recommend you consult a professional tax
adviser before investing in the BNZ KiwiSaver Scheme. For further information on tax matters, you can
also refer to the IRD website www.ird.govt.nz and the BNZ KiwiSaver Scheme's registered prospectus.
Tax rules applying to the BNZ KiwiSaver Scheme
The BNZ KiwiSaver Scheme is a portfolio investment entity ("PIE"). Tax is paid by the BNZ KiwiSaver
Scheme on the taxable income attributed to you (after allowing for applicable fees and expenses) at
your notified prescribed investor rate ("PIR").
The calculation basis and timing of taxable income recognised by the BNZ KiwiSaver Scheme in
respect of each investment is dependent upon the nature of the investment itself. Certain types of
investments may give rise to gains which are taxable on an unrealised basis or a basis that may not
directly correlate to realised or unrealised gains arising from the investment.
Any capital gains made by the BNZ KiwiSaver Scheme in respect of shares in New Zealand resident
companies and Australian resident companies that are listed on approved Australian Stock Exchange
indices and maintain a franking credit account, are excluded from the calculation of taxable income.
Most overseas shares (not being Australian shares as discussed above) and interests in managed
funds held by the BNZ KiwiSaver Scheme will be taxed under the fair dividend rate method. Under
the fair dividend rate method, the BNZ KiwiSaver Scheme will be deemed to have received income
equal to 5% of the opening market value of the relevant overseas shares and interests in managed
funds at the start of a valuation period. This is proportioned over the year and adjusted for quick sales
(i.e. interests that are purchased and sold within the income year). Any dividends or other returns
(including profits from sale) flowing from those overseas shares and interests in managed funds will
not be separately taxed in New Zealand. Generally, a tax deduction may not be claimed for any losses.
The BNZ KiwiSaver Scheme is taxed under the ordinary tax rules in respect of its other income, and is
therefore taxed on all interest received and on all gains on hedging derivatives (with a deduction for
any losses on derivatives).
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