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  # 1732445 7-Mar-2017 12:43
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rscole86

 

Can someone please confirm the fund management fees for me? I can see on their faq that it is 0.30%, @canaletto mentions 0.31% and their disclosure statement mentions both 0.31%.

 

I am trying to get my head around understanding some of the different schemes out there, and Simplicity is the first one I have found that has extra fees in their disclosure statement that is not clear on their website. Ie, the faq states 0.30% yet the disclosure states 0.31%. Also can anyone confirm the fees still need GST applied to them? Ie $30pa+12.5% and 0.31%+tax?

 

Thanks

 

 

Can't answer your specific question, but just to confirm GST in NZ is 15% (increased from 12.5% in 2010!).


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  # 1732456 7-Mar-2017 12:55
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Quite right, mind is going numb after spending the last few hours reading kiwisaver disclosure statements and provider websites.


 
 
 
 


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  # 1732459 7-Mar-2017 12:58
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The fee, for all simplicity funds, is 0.3% +$30.




BlinkyBill

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  # 1732562 7-Mar-2017 15:09
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According to an email I got from Simplicity;

 

Our management fee is 0.30% per annum and we allow for another 0.01% which could relates to expenses that may occur but to date have not been incurred or charged. You can safely use 0.31% in any comparison and we would still come out cheaper by a considerable margin.

 

After a bit of to-ing a fro-ing, I got the following reply about GST.

 

As we understand it only certain components that make up the management fee may attract GST. You can't apply GST to the entire fee as this is not necessarily correct. Here are articles which looks at this issue in more detail;

 

http://investmentnews.co.nz/investment-news/fund-fee-gst-decision-due-soon/

 

http://investmentnews.co.nz/investment-news/ird-favours-fund-fees-to-go-gst-free/

 

http://www.ird.govt.nz/technical-tax/legislation/2006/2006-81/2006-81-gst-financial/leg-2006-81-gst-financial-services.html 

 

And;

 

 

Looking at the following link from IRD, administration charges are financial services and therefore are exempt from GST

 

http://www.ird.govt.nz/gst/additional-calcs/calc-spec-supplies/calc-exempt/calc-exempt.html#fs

 

 

So as best I understand it;

 

Their management fee should be calculated at 0.31%, tho they have no had to charge the 0.01% fee to date, so 0.30% is technically correct.

 

GST will not be charged on the annual $30 fee.

 

GST is not charged on the management fee as a whole, but the IRD may change the rules surrounding that, and it may be charged on certain aspects only.


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  # 1732985 8-Mar-2017 12:48
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FYI Simplicity is now also offering investment funds.





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