The Government's halving of compulsory company contributions to KiwiSaver is not being taken up by a major government-owned business.
Air New Zealand was one of the first companies to immediately commit to a 4 per cent contribution under the old scheme which gradually moved to that level.
The
airline said today that it was staying at 4 per cent even though the Government this week reduced the compulsory company contribution to 2 per cent.
Air NZ has 4000 staff in KiwiSaver. The Government owns 76 per cent of the airline.
Yesterday the National-led Government passed The Taxation (Urgent Measures and Annual Rates) Bill, enshrining tax cuts and KiwiSaver changes into law.
The bill reduced KiwiSaver to a "two plus two" scheme.
The removal of the employer tax credit from April 1 next year would cost Air New Zealand $4.5 million a year, the airline's group general manager people, Vanessa Stoddart, said.
However, employees needed stability in the scheme to allow them to plan their retirement savings with confidence, she said.
Air New Zealand remained committed to matching employees' contributions of up to 4 per cent to KiwiSaver, she said.
While Air New Zealand supported the Government's moves to make KiwiSaver more affordable for low income earners by reducing the minimum employee contribution rate to 2 per cent, it was concerned 2 per cent would become a de facto savings level.
"We would like to see the tax exemption on employer contributions restored to 4 per cent, to encourage more employees and employers to maintain their contribution at this higher level."
- NZPA
