Alun Rees-Williams

Just because you might be taxed at a lower rate than 28%.

For 99% of people, probably the easiest way to do it is just pay the scheme tax at 28%.

Effectively, if you're employed and you're paying 33 cents in the dollar or 39%, straight saving.

Yes.

Correct.

So it has to go into something called a QROX fund or a ROX fund.

Either way, either distinction is fine.

And they have to mirror UK law so that one of the key differences is in KiwiSaver, you can take money out before you're 55 and that will go up to 57.

very soon in the UK, but let's say 55 for ease.

So you can pull money out before 55 in KiwiSaver for financial hardship, permanent immigration, first-time purchase.

UK, you can't.

So UK are definitively locked in until you reach a minimum age.

which is currently 55 but will shortly go up to 57 um therefore you cannot use kiwi saver now years ago a few kiwi saver providers thought they could be used and money went in from uk pensions into kiwi saver and money went out of kiwi saver for things like first-time purchase

The UK HMRC got wind of it and they overnight stopped all transfers into Kiwi Savers and retrospectively were going to tax people, penalty tax, because it went into what was called an unauthorised, well, it's called an unauthorised transfer.

It's gone somewhere it shouldn't and it's giving you an advantage you shouldn't have.

So you had a bunch of people that had put money into Kiwi Saver and suddenly faced this 55% tax.

55%?

Which they couldn't take out of their Kiwi Saver.

So massive, right?

Any unauthorised payment from the UK attracts a 40% tax plus a 15% additional bonus for being unauthorised.