Kiwisavers offered tax break

Finance Minister Michael Cullen says contributions to the Kiwisaver scheme will get a small tax break.

Unveiling the scheme's new logo -- the word Kiwisaver with the letter K having an elongated kiwi beak -- Dr Cullen also announced a number of changes which he said would make the work-based saving plan more attractive for workers and employers.

Dr Cullen said employers' contributions would be exempt from withholding tax and it would possible to divert part of a person's Kiwisaver contribution into their mortgage.

Dr Cullen also confirmed a number of changes recommended by a select committee on the Kiwisaver Bill would be adopted, including a delay to the starting date to July 1 2007.

- NZPA