Summarised by Centrist
National is defending a proposed KiwiSaver policy that would require self-employed people to contribute 4% of their income from July 2028, despite questions over how it would work in practice.
The policy is part of National’s wider plan to make KiwiSaver, or an equivalent retirement savings scheme, compulsory for workers if the party is re-elected.
Self-employed workers currently contribute voluntarily and do not receive employer contributions.
National leader Christopher Luxon said asking self-employed people to pay half of the combined employee and employer contribution rate was “fair and reasonable”.
“I think it’s fair and reasonable to say, ‘Look, we expect you to contribute one half of that equation,’” Luxon said.
But Hnry ??chief executive James Fuller said the proposal did not address the practical challenges sole traders face, including fluctuating cash flow, irregular income, lack of employer contributions and weak incentives to use KiwiSaver.
“It doesn’t feel like a natural choice for sole traders purely because of the way that KiwiSaver system works,” Fuller said.
He said the policy could be seen as “government overreach” and risked becoming “a blunt instrument” if the details were not properly worked through.
National revenue spokesperson Simon Watts said the party still needed to work through the mechanics of enforcing compulsory contributions.
Labour leader Chris Hipkins said the policy left “significant unanswered questions”, including how low-income workers and self-employed people would afford compulsory contributions during a cost-of-living crisis.
