RNZ money correspondent Susan Edmunds. Photo: RNZ
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Why is there tax on NZ Super?
You might have seen NZ Super talked about both in terms of a before-tax amount and an after-tax payment.
If you live alone, you can qualify for $1254.28 a fortnight before tax, which is about $1076.84 after tax in most cases, but I can understand why you might question there being a tax to pay at all, when it's a payment from the government.
In reality, there is no money moving around to pay the tax bill. The amount is paid net of tax.
CTU policy director and economist Craig Renney said a "cheque swap" happened automatically.
"Otherwise, the government will be giving you money and then taking it back off you."
He said. for NZ Super, that was partly because of the way the payment was calculated, which was tied to a proportion of the average wage after tax.
"The amount is generated and then the taxable liability is generated, and you get paid on a net basis."
As taxable income, it influences the tax you might pay on any other income you earn, if that additional income pushes you up to the next marginal tax bracket.
Simplicity economist Shamubeel Eaqub said you shouldn't overthink it.
"It's welfare income. All income in New Zealand is taxed, including welfare income.
"The money to pay for welfare comes from taxes, which also pay for other public services."
I would just like to find out if a will drawn up in South Africa would be usable in New Zealand?
Public Trust tells me that a will written in South Africa may be valid in New Zealand, largely depending on the terms of the South African will and whether it had been written in such a way to deal with worldwide assets.
"If a person passes away owning assets in New Zealand and does not have a New Zealand will, but has a will from another country, the estate can be administered in one of two ways.
"If the will is from a Commonwealth country, your executor can apply for a 'reseal', where the High Court of New Zealand officially recognises the probate of the will obtained in the other country.
"If the will is not from a Commonwealth country, your executor will be required to obtain probate in both countries in order to deal with the assets in New Zealand.
"Managing an estate across countries can get complicated. It can add extra time and cost - in both countries - and can often be quite stressful for families."
Public Trust recommended you consulted your South African lawyer, as well as a lawyer in New Zealand, to discuss the potential implications for your estate and your options.
"If you have assets in New Zealand, we recommend putting a will in place here."
I have a mortgage that equals my KiwiSaver. I do not currently contribute to KiwiSaver, as I am self employed and business is tight.
I earn less in interest on my KiwiSaver than I am paying on my mortgage, therefore, surely I would be better off using my KiwiSaver to pay off my mortgage and start contributing my saved mortgage payments to my KiwiSaver?
The short answer is that you can't do this.
The rules around withdrawals are pretty strict, so until you're 65, you would need to be in financial hardship to access your money.
I can see why it appeals, but I guess the problem is that, if people were able to withdraw their money to pay off mortgage debt, many people could get to 65 with nothing saved for retirement.
The idea is that you agree to lock up the money in return for the incentives of the scheme, although - as a self-employed person - it is true there are fewer incentives for you.
You say you aren't getting KiwiSaver returns that are equal to your mortgage interest rate - I wonder if it's worth looking at that. Depending on how long you have until retirement, you may be able to take a bit more risk and generate a higher return.
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