Change your tax rate
The New Zealand Post Super Plan pays tax on your behalf at a rate based on your total personal income. This is called your prescribed investor rate (PIR). Your current PIR is shown on the account statement we send to you each year. If your income has changed and you think you may need to change your PIR, fill in and return a confirmation of tax rate form. Download a confirmation of tax rate form. The form includes a chart to help you work out your PIR. Or you can use Inland Revenue’s PIR calculator.
What is your PIR based on?
Your PIR is based on your total personal income – for example, you might earn additional income from a second job or another investment. Neither the New Zealand Post Super Plan nor Payroll has access to this information.
What happens if your PIR is too low?
Inland Revenue will require you to pay the shortfall, and you may be liable for penalties and interest. You would have to pay this personally. It would not be paid from the Plan.
What happens if your PIR is too high?
Previously, it hasn’t been possible for members of a PIE to receive a refund if they have been on a higher PIR than they needed to be. The government changed this rule in 2020. From the tax year ending 1 April 2021, you can recoup any overpayment as part of the income tax year-end process.
It’s your responsibility to keep your PIR up to date
It’s a good idea to check your tax rate at the beginning of each tax year. The Plan will continue to include reminders in our newsletters and on your annual account statement. PIE tax is paid on your behalf at the end of the scheme year. As long as you update your PIR before 31 March each year, this new rate will be applied for the full tax year.