Aon KiwiSaver Scheme is a portfolio investment entity (PIE). This means the tax payable on the investment income related to your account is based on your prescribed investor rate (PIR).
Your PIR could be different from your personal tax rate, so you will need to tell us what your PIR is. Want to update your PIR?
How to work out your PIR
Working out your PIR is easy. Just follow these simple steps.
Basically, you need to know the amount of your taxable income and your PIE income in each of the last two income years. For most people their income year will be the same as the tax year which is the period from 1 April in one year to 31 March the next year.
It is important that you put your PIR on your KiwiSaver application form. If you don’t tell us your PIR, we will tax your investments at the maximum rate of 28%. If Inland Revenue considers you are on the wrong PIR based on the information they hold, they may provide us with a different tax rate to apply to your attributed PIE income. We are required to apply this rate unless you subsequently notify us of a different PIR.
How to update your PIR
You can log in to your Aon KiwiSaver Scheme account online to update your PIR. Once you are logged in just click on the arrow next to your name at the top right, select ‘My account’ and scroll to the bottom of the page to update your PIR. You can also contact us with a request to update your PIR.
We answer your questions about KiwiSaver and tax
Is my prescribed investor rate different to my personal tax rate?
Yes. A prescribed investor rate is the tax rate used for your KiwiSaver account. It is different to your personal tax rate, which is the rate used for income such as salary and wages.
What happens if the tax paid on my KiwiSaver investment income is based on the wrong prescribed investor rate (PIR)?
For the 2019-20 income year:
- if the correct PIR was higher than the one you told us, you will have to pay any PIE tax shortfall and may have penalties and interest.
- if your correct PIR was lower than the one you told us, you generally will not be able to claim back the excess tax paid.
However, from the 2020-21 income year Inland Revenue is introducing an end-of-year tax reconciliation which means that:
- if the correct PIR was higher than the one you told us, you will have to pay any PIE tax shortfall and you may have penalties and interest.
- if your correct PIR was lower than the one you told us, then any additional tax paid by the PIE may reduce your income tax liability for that income year and may give rise to a tax refund.
What happens if my prescribed investor rate changes?
Please let us know of any change to your PIR. While we can’t change tax payments we’ve already made on your account, we will be able to change the rate for future payments. You can update your PIR online or by contacting us to request an update.
Will transfers from overseas schemes be taxed?
There is no tax to pay when you transfer your Australian complying superannuation scheme savings to your KiwiSaver account.
We recommend that you consult a professional tax adviser before making any decisions.
Are the contributions that my employer makes taxed?
Yes. These contributions are taxed at a rate based on your income, which is worked out as shown in the table below:
|ESCT Rate threshold amount
|$0 – $16,800
|$16,801 – $57,600
|$57,601 – $84,000
|$84,001 and above
We appreciate you may still have questions about how the tax rate works for your KiwiSaver scheme. Please visit the Inland Revenue website for more information – or contact our helpdesk by emailing us or calling 0800 266 463.