Superannuation scheme contributions
Funds deducted from pay for superannuation scheme contributions
A client’s assessable income is their estimated net weekly income (ie income after tax) from all sources after the deduction of any Accident Compensation Corporation (ACC) premiums or levies.
When a client has deductions from their pay for Kiwisaver or other superannuation scheme contributions, the amount deducted is assessable income for Income Related Rent.
Employer contributions
Generally, when an employer contributes to an employee’s Kiwisaver account or other superannuation scheme, this contribution is not assessable income for Income Related Rent.
Where an employer is making significant voluntary contributions to a client’s superannuation scheme rather than paying the client a higher wage, this may be considered deprivation of income. This depends on factors such as the size and frequency of those deposits and the individual circumstances of the client.
Funds held in a superannuation scheme
Funds held in a KiwiSaver account or other superannuation scheme are not considered assessable income.
Note funds held in a KiwiSaver account or other superannuation scheme are not considered an assessable asset for Income Related Rent unless the person is able to withdraw them due to being over 65 years of age.
Withdrawal of funds from a superannuation scheme
When a person reaches the age of 65 they can withdraw their funds from their KiwiSaver account and generally any other superannuation scheme.
Funds that are withdrawn or available to be withdrawn from KiwiSaver or any other superannuation scheme are an assessable asset.
Significant lump sums deposited in a superannuation scheme
Depositing significant lump sum funds into a superannuation scheme may be considered deprivation of income. This depends on factors such as the size and frequency of those deposits and the individual circumstances of the client.
