The more successful it is in reducing average ordinary time after tax earnings, the less it costs the government, because the level of superannuation is set by a constant ratio to average ordinary time after tax earnings.
(They're taxing the government's contribution too, by the way. The mean buggers.)
It is strange to be mean with the response to the recession. The problem New Zealand faces is a precipitous decline in consumer demand relative to our earnings. Encouraging people to reduce their incomes will only depress demand even further.
This National Government with not many ideas can't even get straight the tiny little ideas it has about how to cope with global financial crisis.
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