Letters to the editor: 'Disbelief' as benefit bump lifts Kiwisaver tax

A reader says her slight benefit increase has hurt her retirement savings. Photo / File

I am writing in disbelief.

A few weeks ago, my jobseeker benefit went up slightly due to government intervention to provide people on benefits with a small increase.

However, I have just had a letter from the IRD saying the increase has taken my KiwiSaver to the next level of tax.

Apparently, I am now receiving $600 per year - or $11.50 per week - before tax over the prescribed limit.

Now, instead of paying 10 per cent tax on any possible return, I have to pay 17 per cent tax, nearly double the tax.

I struggle to save into my KiwiSaver on a benefit, and certainly do not have a vast sum saved. I cannot seem to get any work, probably because I am 64.

Jacinda, what do you think of government departments ruining your efforts to help the poor?

Inland Revenue - why not kick me while I am down?

V Ross
Pāpāmoa

Ball in ratepayers' court

Our city commissioners have done a pretty good job with the Long-term Plan. Obviously many ratepayers have been hit badly by the increases, pensioners more than most as they don't really have recourse to social welfare handouts.

The council has offered to help them by spreading the payments. In my view, that's not helping. Helping would consist of finding an avenue where they will pay less. Most of them have paid for the existing infrastructure, so why should they pay for it again?

Now, we have the Three Waters proposal. When we consider that Tauranga city has, arguably, the best quality water in New Zealand and will shortly (with the completion of the Waiāri water supply) be ahead of demand for some years.

We certainly don't need another government body demanding more money for work that is scheduled to be paid for by outrageous rates demands.

It's obvious that we need to look at who we want as councillors once we are allowed to have them again, and maybe a different way of electing a new mayor.

Perhaps the rules need to change so that infrastructure maintenance, repairs and replacement take priority over everything else.

Ratepayers, the ball is in your court.

Dan Russell
Tauranga

Pass on plastic

The biggest problem we have today is plastic, because it is almost impossible to get rid of and yet we still use and import millions of tonnes of it daily.

Supermarkets, proud that they did away with plastic bags, still have a lot of products wrapped in plastic.

If we are to be serious about this scourge then the answer, surely, is to just stop using it.

I spent most of my youth without plastic because it had not been invented. We managed - we had paper bags and we used carriers and baskets.

Why doesn't the Government just stop using it?

It really is that simple.

Jim Adams
Rotorua

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