Luxon Unveils Mandatory KiwiSaver Plan, Warns of Tight Election

Prime Minister Christopher Luxon has unveiled a significant policy proposal to make New Zealand's KiwiSaver retirement savings scheme mandatory for all workers, should his National Party win re-election. The announcement came during the party's annual conference, where Luxon outlined plans for mandatory contributions starting July 2028.

Under the proposed policy, both employees and employers would be required to contribute at a default rate of 6% by 2032. National also intends to ensure employers continue contributions for workers over 65 and provide a government contribution for those on parental leave. Additionally, babies would be automatically enrolled, receiving a $1,500 "Baby Boost" payment to encourage early savings, an increase from a previously announced $1,000.

“

polling and the outcome of November 7 would be “tight”.

While the KiwiSaver proposals were positively received at the conference, the party's leadership acknowledged the upcoming election will be a close contest. Party president Sylvia Wood and campaign chair Simeon Brown warned that polling indicates a tight race on November 7. Brown further cautioned against strategic voting for smaller coalition partners, the ACT and New Zealand First parties, likening them to "distracting children who are constantly fighting."

The conference also saw the Green Party launch its alternative tax plan, proposing a "super-rich tax," inheritance and gift taxes, and a higher corporate tax rate. They also plan to reverse changes to interest deductibility and adjust income tax rates, aiming to provide a tax cut for 96% of New Zealanders earning under $160,000. The Greens forecast their plan would generate $32 billion in new revenue over four years.

“

comparing National’s coalition partners to distracting children who are constantly fighting.