This Supplement describes changes to KiwiSaver arising from the Taxation (Annual Rates and Budget Measures) Act 2011. This Supplement forms part of and is to be read in conjunction with the "How much do I pay?" section in the attached Investment Statement dated 16 August 2010 and Application Form for the Brook Professional KiwiSaver Scheme. This Supplement is intended to signal to investors the legislative changes, and, when operable, will replace terms in that section and the Application Form to the extent of any inconsistency.

Government budget changes to KiwiSaver

The Budget announced by the Government in May 2011 resulted in a number of changes to KiwiSaver. These changes will be phased in, as follows:

1. From 1 April 2012, the tax-free status of employer contributions to KiwiSaver will end. Employer Superannuation Contribution Tax will be levied on the employer contribution at the employee's marginal tax rate. This tax is payable by your employer.
2. For the year ending 30 June 2012, the Member Tax Credit Amount will be halved from $1 to 50c for every $1 contributed by members, up to a maximum of $10 per week or $521.43 per year, which is half the current maximum.
3. From 1 April 2013, both the minimum member contribution rate and the minimum employer contribution rate will rise from 2% to 3% (for both new and existing members). This will also be the default contribution rate. Members will still be able to select the higher rates of 4% or 8%.

New members will continue to receive the $1,000 Kick-Start payment.

For further information on the Brook Professional KiwiSaver Scheme, please contact us on 0800 802 766 or email kiwisaver@brook.co.nz.