Inland Revenue will have to make unanticipated changes to its software to manage changes to the KiwiSaver programme, which was announced in the Budget. However, it says its side of the package will be ready to go on schedule, on July 1.
The ability to manage the government’s tax contribution for each KiwiSaver member — the Member Tax Credit — is not required until July 1, 2008, says an IRD spokeswoman.
“This change will require KiwiSaver’s system requirements to be reviewed and recommendations made to ensure that the system can incorporate the changes,” the IRD says.
Although the tax credit scheme starts on July 1 this year, it is an annual contribution, so the first payments will not be made until July 2008. Therefore, the change will not impact on the July 1 implementation date, says the IRD.
“KiwiSaver will launch on July 1, 2007 as planned,” the IRD says.