Latest news with #Hnry


Newsroom
2 days ago
- Business
- Newsroom
Govt KiwiSaver cut ‘final nail in the coffin' for self-employed
Self-employed New Zealanders are re-thinking their retirement savings schemes after the Government slashed its KiwiSaver co-contribution in the Budget. Data compiled from accounting fintech Hnry's latest sole trader pulse check highlights negativity following the change, with 52 percent of the 502 self-employed workers polled, actively opposing the cut. Forty-three percent say it will alter their saving behaviour and 24 percent plan to reduce their contribution as a result of the change.


Scoop
22-07-2025
- Business
- Scoop
Govt Cuts KiwiSaver, Hnry Steps In With $130,000 Injection
Press Release – Hnry Hnry – one of New Zealands largest accountancy firms – says the move responds to growing concern among sole traders about the impact of the governments decision. Hnry is topping up KiwiSaver accounts for 500 randomly selected customers with a one-off $260.72 contribution, directly responding to the government's decision to halve the annual KiwiSaver top-up for the self-employed in Budget 2025. New survey data reveals that 52 per cent of sole traders oppose the government's policy, only 19 per cent support it, and 24 per cent plan to reduce their KiwiSaver contributions as a result. James Fuller, Hnry CEO and co-founder, warns the decision will lead to more people relying on state-funded support and is calling for the top-up to be reinstated for sole traders and broader reform to support sole trader retirement savings. Hnry is topping up the KiwiSaver accounts of 500 sole traders, stepping in after the government halved its annual contribution to self-employed workers from 1 July. The randomly selected Hnry customers will each receive a one-off KiwiSaver contribution of $260.72, matching the amount removed in Budget 2025 and injecting more than $130,000 directly into customers' retirement savings, which could boost the group's collective funds by one million dollars by the time they retire. Hnry – one of New Zealand's largest accountancy firms – says the move responds to growing concern among sole traders about the impact of the government's decision. New findings from the latest Sole Trader Pulse survey, the country's only independent survey of sole traders, reveal: Fifty-two per cent oppose the cut Just 19 per cent support it Almost a quarter say they will reduce KiwiSaver contributions because of it 41 per cent have paused Kiwisaver or saving contributions due to inflationary pressures Unlike employees, sole traders don't receive employer contributions. Their only incentive to save for retirement comes from the government's annual top-up, now halved, which applies if they save at least $1,042.86 a year. 's modelling suggests that this could reduce their overall retirement savings by up to 17 per cent. Hnry co-founder and CEO James Fuller says the country's 400,000 sole traders are hardest hit, but there's been no recognition of the impact from the government. 'We don't employ these people, but we do see every day how hard they work and how little support they get. This cut makes it even more difficult for them to establish long-term financial security. It shouldn't fall to private businesses to fill the gap, and while we'd love to help every customer, we're in a position to help some, so we are,' he says. The 500 randomly selected Hnry customers are being notified today of the one-off contribution being paid directly into their KiwiSaver account. Fuller says the government continues to underestimate the scale and contribution of the self-employed workforce, and, as a starting point, is calling on it to reverse the Budget 2025 decision and reinstate the full $521.43 top-up for sole traders. 'We're talking about nearly 20 percent of the workforce; builders, electricians, physios, nurses, and creatives. People we rely on every day, but who are constantly overlooked by a government that favours policies that benefit big business. 'This isn't a fringe issue; the ripple effect is irrevocable; it will create headaches for future governments when it comes to dealing with more retirees relying on state-funded support because they have less in their retirement savings. 'There are also additional levers that could be pulled to encourage people to save for their retirement – contributions in Australia are tax-deductible, which incentivises people to save. We need to be doing more, not less; yet we're stuck with shortsighted decisions that unfairly penalise a workforce that contributes billions to our country's GDP every year,' he says. Hnry is finalising a joint report with the Retirement Commission, set for release next month, exploring ways the government can better support sole traders' retirement savings. The latest Sole Trader Pulse was conducted between 2 and 13 June 2025, with a margin of error of ±4.4%. FAQ How were customers selected? Hnry randomly selected 500 customers from its database, who will be notified today. How much money will each customer receive? Each selected customer will receive a total of $260.72, paid directly into their KiwiSaver account. Hnry will make payments in two instalments: one in July and one in August 2025. Will this be an annual contribution? No. This is a one-off contribution made in response to the government's decision, announced in Budget 2025, to halve the annual KiwiSaver contribution for sole traders. Why has Hnry decided to make this contribution? Modelling from shows that cutting the government contribution will leave the self-employed 17 per cent worse off at retirement than those in traditional employment. Hnry is in a position to provide a one-off contribution and wants to support its customers where it can. Is Hnry responsible for KiwiSaver contributions – and should the private sector be doing more? No. Hnry supports and advocates for New Zealand's sole trader workforce, but it does not employ them and therefore does not make employer KiwiSaver contributions. Employees already receive employer contributions to their retirement savings – the issue here is that sole traders' only incentive, the government contribution, has been halved. By making this one-off payment, Hnry aims to offset the $260.72 loss these 500 sole traders will face in the 2025/26 year, and to draw attention to a broader issue: if the needs of the country's 400,000 sole traders continue to be overlooked, the government risks creating a generation of Kiwis who may require greater support in retirement. About Hnry: Founded in 2017, Hnry is one of New Zealand's largest accountancy firms. It provides a pay-as-you-go, all-in-one digital accounting service that handles invoicing, expenses, payments, taxes, filings, and offers expert on-demand support. Hnry takes care of all the financial admin for contractors, freelancers, sole traders, and the self-employed, allowing them to focus on getting the job done rather than worrying about tax and compliance. Hnry recently won the 'Innovation in Financial Services' category at the 2024 INFINZ Awards. In 2023 and 2024, as well as being one of the leading companies in the Deloitte Fast 50, it was also recognised as the Fastest Growing Technology Business in the Wellington and Lower North Island region.


Scoop
22-07-2025
- Business
- Scoop
Govt Cuts KiwiSaver, Hnry Steps In With $130,000 Injection
Hnry is topping up KiwiSaver accounts for 500 randomly selected customers with a one-off $260.72 contribution, directly responding to the government's decision to halve the annual KiwiSaver top-up for the self-employed in Budget 2025. New survey data reveals that 52 per cent of sole traders oppose the government's policy, only 19 per cent support it, and 24 per cent plan to reduce their KiwiSaver contributions as a result. James Fuller, Hnry CEO and co-founder, warns the decision will lead to more people relying on state-funded support and is calling for the top-up to be reinstated for sole traders and broader reform to support sole trader retirement savings. Hnry is topping up the KiwiSaver accounts of 500 sole traders, stepping in after the government halved its annual contribution to self-employed workers from 1 July. The randomly selected Hnry customers will each receive a one-off KiwiSaver contribution of $260.72, matching the amount removed in Budget 2025 and injecting more than $130,000 directly into customers' retirement savings, which could boost the group's collective funds by one million dollars by the time they retire. Hnry - one of New Zealand's largest accountancy firms - says the move responds to growing concern among sole traders about the impact of the government's decision. New findings from the latest Sole Trader Pulse survey, the country's only independent survey of sole traders, reveal: Fifty-two per cent oppose the cut Just 19 per cent support it Almost a quarter say they will reduce KiwiSaver contributions because of it 41 per cent have paused Kiwisaver or saving contributions due to inflationary pressures Unlike employees, sole traders don't receive employer contributions. Their only incentive to save for retirement comes from the government's annual top-up, now halved, which applies if they save at least $1,042.86 a year. modelling suggests that this could reduce their overall retirement savings by up to 17 per cent. Hnry co-founder and CEO James Fuller says the country's 400,000 sole traders are hardest hit, but there's been no recognition of the impact from the government. 'We don't employ these people, but we do see every day how hard they work and how little support they get. This cut makes it even more difficult for them to establish long-term financial security. It shouldn't fall to private businesses to fill the gap, and while we'd love to help every customer, we're in a position to help some, so we are,' he says. The 500 randomly selected Hnry customers are being notified today of the one-off contribution being paid directly into their KiwiSaver account. Fuller says the government continues to underestimate the scale and contribution of the self-employed workforce, and, as a starting point, is calling on it to reverse the Budget 2025 decision and reinstate the full $521.43 top-up for sole traders. 'We're talking about nearly 20 percent of the workforce; builders, electricians, physios, nurses, and creatives. People we rely on every day, but who are constantly overlooked by a government that favours policies that benefit big business. 'This isn't a fringe issue; the ripple effect is irrevocable; it will create headaches for future governments when it comes to dealing with more retirees relying on state-funded support because they have less in their retirement savings. 'There are also additional levers that could be pulled to encourage people to save for their retirement - contributions in Australia are tax-deductible, which incentivises people to save. We need to be doing more, not less; yet we're stuck with shortsighted decisions that unfairly penalise a workforce that contributes billions to our country's GDP every year,' he says. Hnry is finalising a joint report with the Retirement Commission, set for release next month, exploring ways the government can better support sole traders' retirement savings. The latest Sole Trader Pulse was conducted between 2 and 13 June 2025, with a margin of error of ±4.4%. FAQ How were customers selected? Hnry randomly selected 500 customers from its database, who will be notified today. How much money will each customer receive? Each selected customer will receive a total of $260.72, paid directly into their KiwiSaver account. Hnry will make payments in two instalments: one in July and one in August 2025. Will this be an annual contribution? No. This is a one-off contribution made in response to the government's decision, announced in Budget 2025, to halve the annual KiwiSaver contribution for sole traders. Why has Hnry decided to make this contribution? Modelling from shows that cutting the government contribution will leave the self-employed 17 per cent worse off at retirement than those in traditional employment. Hnry is in a position to provide a one-off contribution and wants to support its customers where it can. Is Hnry responsible for KiwiSaver contributions - and should the private sector be doing more? No. Hnry supports and advocates for New Zealand's sole trader workforce, but it does not employ them and therefore does not make employer KiwiSaver contributions. Employees already receive employer contributions to their retirement savings - the issue here is that sole traders' only incentive, the government contribution, has been halved. By making this one-off payment, Hnry aims to offset the $260.72 loss these 500 sole traders will face in the 2025/26 year, and to draw attention to a broader issue: if the needs of the country's 400,000 sole traders continue to be overlooked, the government risks creating a generation of Kiwis who may require greater support in retirement. About Hnry: Founded in 2017, Hnry is one of New Zealand's largest accountancy firms. It provides a pay-as-you-go, all-in-one digital accounting service that handles invoicing, expenses, payments, taxes, filings, and offers expert on-demand support. Hnry takes care of all the financial admin for contractors, freelancers, sole traders, and the self-employed, allowing them to focus on getting the job done rather than worrying about tax and compliance. Hnry recently won the 'Innovation in Financial Services' category at the 2024 INFINZ Awards. In 2023 and 2024, as well as being one of the leading companies in the Deloitte Fast 50, it was also recognised as the Fastest Growing Technology Business in the Wellington and Lower North Island region.


Scoop
25-05-2025
- Business
- Scoop
Budget 2025: Sole Trader Feels ‘Ripped Off' By Government's KiwiSaver Cuts
Article – RNZ The budget move to halve the government's KiwiSaver contributions has been described as a blow to sole traders. Anan Zaki, Business reporter The budget move to halve the government's KiwiSaver contributions has been described as a blow to sole traders. The government contribution would be cut from $521 to just over $260 – provided there was a minimum of $1042 saved over a year, and those earning more than $180,000 would now miss out altogether. The government said this is to make sure the scheme's costs to the taxpayer 'remain sustainable'. Wellington-based personal trainer Carl Rein believed it would affect him long-term. 'I'm in my 30s, so I've got at least 30-plus years to go before I'm even going to be able to access it,' Rein said. 'So all of that accumulated interest that I would benefit from later on, and it would give me greater security later on in life, is now not going to be there.' Rein said the move made it 'disheartening' to be involved in KiwiSaver, and he felt 'ripped off'. He was also concerned it opened the door for government contributions to become zero. Rein's comments came alongside criticism of the policy from sole trader tax platform Hnry. Hnry chief executive James Fuller said the government's decision posed risks to the country's 400,000 sole traders. 'The danger is that sole traders switch off from KiwiSaver entirely and then potentially look at more risky ways to try and prop up the income they would have got from their retirement savings that the government was contributing to,' Fuller said. 'So, it leaves a lot of questions for sole traders as to where they put their money now that they know that the government isn't backing them to contribute to KiwiSaver,' he said. Fuller said KiwiSaver was the wrong place to be looking for savings.


Scoop
25-05-2025
- Business
- Scoop
Budget 2025: Sole Trader Feels 'Ripped Off' By Government's KiwiSaver Cuts
The budget move to halve the government's KiwiSaver contributions has been described as a blow to sole traders. The government contribution would be cut from $521 to just over $260 - provided there was a minimum of $1042 saved over a year, and those earning more than $180,000 would now miss out altogether. The government said this is to make sure the scheme's costs to the taxpayer "remain sustainable". Wellington-based personal trainer Carl Rein believed it would affect him long-term. "I'm in my 30s, so I've got at least 30-plus years to go before I'm even going to be able to access it," Rein said. "So all of that accumulated interest that I would benefit from later on, and it would give me greater security later on in life, is now not going to be there." Rein said the move made it "disheartening" to be involved in KiwiSaver, and he felt "ripped off". He was also concerned it opened the door for government contributions to become zero. Rein's comments came alongside criticism of the policy from sole trader tax platform Hnry. Hnry chief executive James Fuller said the government's decision posed risks to the country's 400,000 sole traders. "The danger is that sole traders switch off from KiwiSaver entirely and then potentially look at more risky ways to try and prop up the income they would have got from their retirement savings that the government was contributing to," Fuller said. "So, it leaves a lot of questions for sole traders as to where they put their money now that they know that the government isn't backing them to contribute to KiwiSaver," he said. Fuller said KiwiSaver was the wrong place to be looking for savings.