Whai Rawa Frequently Asked Questions
- What is Whai Rawa?
- Who can join Whai Rawa?
- What is the Annual distribution from Te Rūnanga o Ngāi Tahu?
- What distributions have been announced to date?
- What are the matched savings from Te Rūnanga o Ngāi Tahu?
- What are the matched savings amounts for 2007?
- What are the matched savings for 2008?
- How do I pay money into Whai Rawa?
- I already have plenty of savings plans, why do I need another one?
- I don't want or need to save for the future – what about me?
- How many Whai Rawa accounts can I have?
- What happens to any funds in my Whai Rawa account if I die?
Kaumātua Questions
- What is an Elective Member of Whai Rawa?
- Will I still receive my Kaumātua Grant if I join Whai Rawa?
Tax Questions
- Can I gift money to Whai Rawa members?
- What is a PIE or Portfolio Investment Entity?
- What is PIR or Prescribed Investor Rate?
- How do I work out my PIR?
- What happens if I give you the wrong PIR or if I don't give my IRD number?
- What happens if my PIR rate changes?
- How do I find out my IRD number?
- What if I don't have an IRD number?
- What tax do I pay on funds in my Whai Rawa account?
General Questions
- How is interest/earnings calculated and added to my Whai Rawa account?
- How much have I earned on my Whai Rawa account?
- What return can I expect on my savings?
- Can I invest my savings in a higher risk fund?
Statement Questions
- My balance doesn't seem right- it isn't showing all of my payments?
- What about KiwiSaver?
- Can I close my Whai Rawa Account?
- Can I deposit Cash into my Account?
- Can I pay by cheque?
- Can I transfer money into another Whai Rawa Account?
- Can Whai Rawa account holders use their funds to study or purchase property overseas?
- How do I withdraw money from my Whai Rawa Account?
- Glossary of Terms - Whai Rawa
- What are the Charges?
- What are the Risks?
Whai Rawa Frequently Asked Questions
What is Whai Rawa?
Whai Rawa is a savings plan for all Ngāi Tahu Whānui.
Its focus is on supporting members to achieve increased personal financial wealth in the medium to long term and assisting members to access higher levels of tertiary education, increased levels of home ownership and increased emphasis on saving for retirement.
Whai Rawa is also a means whereby members can increase their level of understanding of financial and investment matters through education/training programmess.
Who can join Whai Rawa?
Individuals who are enrolled with the Ngāi Tahu Whakapapa Unit are eligible to join Whai Rawa and will be sent a Whai Rawa pack on enrolment.
What is the Annual distribution from Te Rūnanga o Ngāi Tahu?
Each year Te Rūnanga o Ngāi Tahu determine the amount (if any) of the Annual Distribution to be made to members of Whai Rawa.
Once added to member's account the annual distribution then begins to build interest which accumulates and compounds for the members benefit.
What distributions have been announced to date?
The first distribution announced was $125 for those members of Whai Rawa as at 31 December 2006, and was paid into member's accounts in March 2007.
The second distribution amount was $250, for those members of Whai Rawa as at 31 December 2007, and was paid into member's accounts in March 2008.
The third distribution amount was $25 for those members of Whai Rawa as at 31 December 2008. This amount was inclusive of Retirement Scheme Contribution Tax (RSCT) and was deposited, net of any RSCT deductions, into your account 30 March 2009.
What are the matched savings from Te Rūnanga o Ngāi Tahu?
Matched savings are designed to encourage members of Whai Rawa to save their own money by providing a unique incentive of ‘matching' the amount members save, (to a maximum) with money from Te Rūnanga. Each year Te Rūnanga will determine the amount of matched saving available to members for the next year.
What were the matched savings amounts for savings made in 2007?
Adults received matched savings of 1:1 to the maximum of $100
Children received matched savings of 4:1 to the maximum of $100
These were paid in March 2008.
What were the matched savings amounts for savings made in 2008?
Adult members who save into their Whai Rawa account, in 2008, received matched savings at a ratio of 1:1 up to the maximum of $200.
Child members also had their maximum matched savings doubled to $200. The ratio was still 4:1. So if a Child member saved $20 in 2008 then Te Rūnanga would have matched those savings with $80. If the member saved $50 over 2008 then they would receive the maximum matched savings of $200.
All matched savings payments for 2008 matched savings were inclusive of Retirement Scheme Contribution Tax (RSCT) (link to RSCT area)
Matched savings for your 2008 savings were paid at the end of March 2009, net of any RSCT deductions.
What are the matched savings for savings made in 2009?
Adult members who save into their Whai Rawa account, in 2009, will receive matched savings at a ratio of 1:1 up to the maximum of $200.
Child members who save into their Whai Rawa account in 2009, will receive matched savings at a ratio of 4:1 up to the maximum of $200. For example $50 saved over 2009 would receive the maximum matched savings of $200.
All matched savings payments for 2008 matched savings were inclusive of Retirement Scheme Contribution Tax (RSCT) (link to RSCT area)
Matched savings for your 2009 savings are paid at the end of March 2010 net of any RSCT deductions.
Are there any other major benefits of Whai Rawa?
Te Rūnanga has to date paid all investment fees and administrative costs associated with Whai Rawa meaning members have been able to enjoy the full benefits of distributions, matched savings and earnings from the cash fund Whai Rawa has been invested in.
How do I pay money into Whai Rawa?
Learn about all the ways you can pay money into Whai Rawa.
I already have plenty of savings plans, why do I need another one?
It is your right as a Ngāi Tahu member to join Whai Rawa and receive the benefits of the scheme.
Please refer to the latest Investment Statement for further information on how Whai Rawa works.
I don't want or need to save for the future – what about me?
Why not set up a plan for your whānau? You could contribute to your children or grandchildren's plan. This would help them get a good start in life and give them choices in the future. You would be teaching them the value of saving money for themselves in the future – instead of spending it all now. You would be helping future generations of Ngāi Tahu build up their wealth, which will empower your whānau and all Ngāi Tahu to build independence and dignity.
How many Whai Rawa accounts can I have?
Only one per person.
What happens to any funds in my Whai Rawa account if I die?
If you have a will, the proceeds of your Whai Rawa account will follow the provisions of your will. If you do not have a will the proceeds will follow the common law provisions for treatment of assets upon death.
Kaumātua Questions
What is an Elective Member of Whai Rawa?
A member who has attained 65 years of age and has elected to remain in Whai Rawa or a member over age 65 who has applied to join Whai Rawa. Elective members do not receive distributions or matched savings.
Will I still receive my Kaumātua Grant if I join Whai Rawa?
Yes you will still receive your Kaumātua Grant whether you choose to join Whai Rawa or not.
Tax Questions
What is a PIE (Portfolio Investment Entity)?
These are collective investment vehicles which adopt a new tax structure that came into force from 1 October 2007. This new structure allows NZ tax resident investor's taxable income from a PIE to be taxed at their prescribed investor rate to a maximum of 30%.
What is PIR (Prescribed Investor Rate?)
This is the rate that tax will be paid for you within a PIE. This rate reflects your income from salary, wages and any additional income and is currently either 19.5% or 30%.
How do I work out my PIR?
Your Prescribed Investor Rate will be either 19.5% or 30%. To qualify for the 19.5% prescribed investor rate, you must be a New Zealand tax resident and, in either of the two income years immediately before the tax year in question, your:
- IRD number must be provided; and
- Taxable income must be $38,000 or less; and
- Combined with your Portfolio Investment Entity income must total $60,000 or less.
For all other individuals and non-residents your prescribed investor rate will be 30%.
What happens if I give you the wrong PIR or if I don't give my IRD number?
If you do not advise us of a change in your prescribed investor rate or provide us with the wrong rate you may have an obligation to file a tax return and pay further tax and penalties.
If you don't provide your IRD number you will be taxed at the higher rate of 30%.
What happens if my PIR rate changes?
It is very important that you tell us your correct Prescribed Investor Rate and also tell us if your rate changes.
If you do not advise us of a change in your prescribed investor rate or provide us with the wrong rate you may have an obligation to file a tax return and pay further tax and penalties or you may pay too much in tax which you can not claim back
How do I find out my IRD number?
If you don't know your IRD number, the easiest way to find it is to ask your employer for it or access it through the IRD on 0800 377 774 or www.ird.govt.nz
What if I don't have an IRD number?
You will need to complete an IR595 which you can obtain by ringing IRD on 0800 377 774 or download one by clicking here.
What tax do I pay on funds in my Whai Rawa account?
Payments from Te Rūnanga in 2007
The first Te Rūnanga annual distribution and matched savings were all paid from capital meaning no tax had to be paid by members on the amounts received into their accounts.
Payments from Te Rūnanga in 2008
The 2008 distribution and matched savings payments from Te Rūnanga was a mixture of both ‘capital' and ‘income'. Tax was deducted from the income portion of your distribution at 19.5% however this will be offset by Māori Authority tax credit at 19.5% available for you from Te Rūnanga.
Payments from Te Rūnanga 2009 onwards
From 2009 any annual distribution and matched savings you may be entitled to, will be taxed at your RSCT rate before those payments are paid into your Whai Rawa account. This tax is likely to be partly offset by a Māori Authority tax credit at 19.5% available for you from Te Rūnanga.
Tax on Investment Returns
As your savings are invested; they earn an investment return. These investment returns are deemed as taxable income. We will deduct tax at the Prescribed Investor Rate (PIR) you have provided to us. Provided you have not declared a rate lower than your actual rate this is likely to be a final tax.
General Questions
Can I gift money to Whai Rawa members?
The simplest way to do so is to ask for their Whai Rawa account details and deposit the money into their Whai Rawa account. Alternatively you can contact the call centre for assistance. Please feel free to ask for a Koha card when making gifts to another member.
How is interest/earnings calculated and added to my Whai Rawa account?
Interest/earnings is calculated on the closing daily balance of your account but is credited to the account quarterly. Once interest has been paid and then allocated to your account, it then forms part of the next daily closing balance of the account and earns interest. This is compounding interest at work, in other words compounding interest means interest on interest you have already received.
PIE tax on your earnings is deducted annually on 31 March.
What return can I expect on my savings?
We invest in an ING Wholesale Cash Fund which has a conservative investment strategy with the 90 day bill rate as the benchmark.
Can I invest my savings in a higher risk fund?
No. Whai Rawa does not currently offer different investment options at this stage but work is underway to explore this option for the future
Statement Questions
My balance doesn't seem right- it isn't showing all of my payments?
We can check your account and balances – to do so we will need you to advise us what payments you believe are not showing - including dates and payment methods.
Contact us on 0800 942 472 (0800 WHAI RAWA) or email us at whairawa@ngaitahu.iwi.nz..
It may take up to 14 days to check your account and reply to your enquiry.
What about KiwiSaver?
When considering KiwiSaver we recommend you seek advice from a professional financial adviser. It may also be useful to visit the Retirement Commission website on www.sorted.co.nz
While consideration has been given to Whai Rawa becoming a KiwiSaver scheme, any such move is unlikely.
Can I close my Whai Rawa account?
A Whai Rawa account can be closed in the following situations:
- When a Member passes on
- When a Member's tribal registration is found to be invalid
- With the permission of the Member, where all accounts have had a zero balance and there has been no account activity for period greater than 12 months
- Without the permission of the Member, where all accounts have had a zero balance for a period of more than three years.
Can I deposit cash into my account?
Yes. Upon request from our contact centre we can issue an ANZ deposit card which must be used when making over the counter deposits into your Whai Rawa account. Your ANZ deposit card has the account details loaded on it to ensure your money is deposited into the correct account. You will need to have your Whai Rawa six digit membership number available. The ANZ deposit card is different than the Whai Rawa membership card. TheWhai Rawa Card has the member's 6-digit account number embossed on it.
Can I pay by cheque?
Yes. Cheques should be made out to:
Whai Rawa Fund Limited
And posted to:
AON New Zealand Ltd.
PO Box 3167,
Auckland
Cheques MUST HAVE the Whai Rawa 6-digit Account Number/s written on the back of the cheque as well as the names of the account holder/s.
You can use one cheque for multiple Whai Rawa account payments but you must record each Whai Rawa account number on the back of the cheque along with the amount to be credited to each account.
Can I transfer money into another Whai Rawa Account?
A Member may transfer part or all of any amount in their Whai Rawa Accounts (Transferor Member) to any other Member (Tranferee).
If any amount transferred is eligible for Matched Savings, the Matched Savings will be credited to the Transferor Member.
The Manager may decline to register any transfer where the Member receiving the transfer is entitled to make a withdrawal or where the Manager considers the transfer is being made by a Member who may be able to apply for a withdrawal for the purpose of avoiding the restrictions on withdrawals in Whai Rawa. The Manager may impose terms and conditions on any transfer as it sees fit, subject to applicable legal restrictions.
Can Whai Rawa account holders use their funds to study or purchase property overseas?
Yes. Please call 0800 942472 for further details.
How do I withdraw money from my Whai Rawa Account?
Your first port of call is to the Whai Rawa contact centre, call 0800 942472 for assistance to withdraw your money.
You can withdraw from your Whai Rawa account:
- for tertiary education
- for first home purchase
- for retirement from age 55 onwards
You can also withdraw in certain special circumstances and savings will be paid to your estate when you pass on.
You need to be 16 years old to be eligible for any withdrawal.
You cannot withdraw more than the amount in your account
If you wish to make a withdrawal you need to fill out a withdrawal request form which will be sent to the Manager for approval.
In some circumstances the Manager may exercise its discretion to approve a withdrawal where not all the conditions are met.
Education Withdrawal
- The Education Withdrawal is for tertiary education. This includes university and polytechnic and some private training organisation courses.
- You can apply to help pay for your tertiary education at the end of your study.
- If you are facing hadship during your study you can request a Special Circumstances education withdrawal
Housing Withdrawal
- You can withdraw money to help buy a house that you intend to live in.
- It should normally be your first home.
- You need to have a sale and purchase agreement and have proof that you have arranged other finance to buy the house if there is a shortfall between the purchase price and the amount of your requested withdrawal.
- You can purchase a house with a partner or other whānau member as long as you will be recorded as one of the legal owners.
- In certain other circumstances you may be able to make a Special Circumstances Housing withdrawal
Retirement Withdrawal
- People aged 55 or over can make Retirement Withdrawals.
- You can make up to two Retirement Withdrawals each calendar year.
Special Circumstances Withdrawal
In certain situations of significant financial hardship or other significant life trauma, you may apply for a Special Circumstance Withdrawal.
Special Circumstances may include:
- Significant financial hardship
- Significant medical illness or trauma
- Matrimonial separation
- Likelihood of bankruptcy
Withdrawal on Death
- Whai Rawa savings will be paid to your estate when you pass on.
- We encourage you to make a will so you can have a say in who receives your Whai Rawa savings.
Glossary of Terms - Whai Rawa
Administration Manager – The Administration Manager will administer Whai Rawa.
Annual Distribution – The Annual Distribution is the amount Te Rūnanga will contribute to Whai Rawa accounts after Matched Savings have been paid.
Calendar Year – 1 January to 31 December.
Child member – A member under the age of 16.
Credited Earnings – The income/earnings received on the assets of Whai Rawa and allocated to your Member Accounts.
Education Withdrawal – This is the withdrawal you can make to help finance tertiary education.
Housing Withdrawal – This is the withdrawal you can make to purchase your first home.
Investment Statement – This legal document that sets out a summary of the rules and conditions of Whai Rawa. You must receive this before you invest in Whai Rawa.
Manager – The Manager is responsible for the day to day running of Whai Rawa, including investing Whai Rawa's assets.
Matched Savings – For every dollar you save of your own into your Whai Rawa account, Te Rūnanga o Ngäi Tahu will match it up the maximum value.
Member Accounts – This is your Whai Rawa account and is divided into 5 sub-accounts, including your Savings Sub-Account, Matched Savings Sub-Account, Distribution Sub-Account, Third Party Sub-Account and a Transfer Sub-Account (or Corporate Account) if applicable.
Promoter – Te Rūnanga o Ngāi Tahu is known as the Promoter because it created Whai Rawa. As a matter of law, the Papatipu Rūnanga Representatives in terms of the Te Rūnanga o Ngāi Tahu Charter are also classified as Promoters of Whai Rawa.
Prospectus – The Prospectus contains a summary of the Trust Deed and financial statements for Whai Rawa, as well as other information.
Reserve Account – An account held by the Manager and used for the administration of the scheme.
Retirement Withdrawal – This is the withdrawal you can make once you're aged 55 years or over.
Return – With Whai Rawa returns are defined as the amount available for you to withdraw from your Whai Rawa account.
Special Circumstances Withdrawal – This is a discretionary withdrawal you can request when you're experiencing certain difficulties.
Third Party – This is anyone other than you or Ngāi Tahu who makes a contribution to your account. They don't need to be a member of Ngāi Tahu or hold a personal Whai Rawa account to make a contribution.
Trust Deed – The document setting up Whai Rawa containing the terms and conditions under which the Trust was established.
Trustee – The Trustee looks after your interests in Whai Rawa.
Trust Fund – All investments, cash, property and other assets, liabilities and obligations of Whai Rawa held by the Trustees.
Elective Member – A member over 65 who chooses to join or remain in Whai Rawa.
Whai Rawa – A long term savings scheme for Ngāi Tahu Whānui to build independent wealth.
Withdrawal on Death – Whai Rawa savings will be paid to your estate when you pass on.
What are the Charges?
Te Rūnanga o Ngāi Tahu have agreed to pay all or part of the fees and expenses (as listed below) in relation to Whai Rawa at this time. However, Te Rūnanga o Ngāi Tahu have the right to decide to reduce the amount it pays towards those fees and expenses or decide not to pay those fees and expenses in the future. Any fees not paid by Ngāi Tahu or any other third party will be met by Whai Rawa and may be charged to members.
The following types of charges are incurred by Whai Rawa.
Manager's fee
The Manager is responsible for the management of Whai Rawa. The Manager is entitled to be reimbursed for all costs and expenses it incurs in its role as Manager of Whai Rawa out of the assets of Whai Rawa. For as long as the Manager's only function is to act as Manager of the Trust, the Manager is entitled to be reimbursed for all proper costs and expenses. The Manager is also entitled to reimbursement for any GST it is required to pay. However, the Manager is not entitled to any further payment for its services and is not operating to make any profit. To find out the level of costs and expenses being incurred by the Manager at the time you join Whai Rawa you can contact the Member Contact Centre on 0800 Whai Rawa (0800 942472). Once you have joined Whai Rawa this information will be available in the financial statements for Whai Rawa. You will receive a copy of the financial statements each year.
Administration Manager's fee
The Administration Manager is responsible for providing administration and registrar services to Whai Rawa. The Administration Manager is entitled to a fee payable from the assets of Whai Rawa. The Administration Manager's fee contains two components, a fixed fee for base services and a volume based fee relating to the number of Members in Whai Rawa.
At the date of this investment statement the Administration Manager's fee is capped at a maximum of $700,000 per annum. The Administration Manager's fee may change from time to time on agreement with the Manager. You can find out the current amount of the Administration Manager's fee at any time by contacting the Member Contact Centre on 0800 Whai Rawa (0800 942472).
Trustee fees
The Trustee is responsible for carrying out the Trustee's functions (including the custodian function). The Trustee is entitled to a fee payable from the assets of Whai Rawa. At the date of this investment statement the Trustee's fee is 0.8% per annum of the total value of the Trust Fund subject to a minimum annual fee of $20,000. The Trustee is also entitled to be reimbursed for any GST is pays on its fee. The Trustee's fee may change from time to time on agreement with the Manager. You can find out the amount of the Trustee's fee at any time by contacting the Member Contact Centre on 0800 Whai Rawa (0800 942472).
Expenses of the Trust/Other fees
The Manager and Trustee are entitled to be reimbursed for all costs and expenses incurred in respect of Whai Rawa.
What are the Risks?
The principal risks applying to Whai Rawa that could affect returns (and which are risks applying to most unit trusts generally) are:
- Investment Risk: The risk of a result of negative returns on Whai Rawa's investments or that the returns for Whai Rawa are insufficient to meet its expenses.
- Credit Risk: The risk of Whai Rawa becoming insolvent and being placed into receivership, liquidation or statutory management or being otherwise unable to meet its financial obligations. If this occurs, you may not recover the full amount of your Whai Rawa account.
- Liquidity Risk: The risk associated with an inability on the part of Whai Rawa to meet monetary obligations in a timely manner. This risk arises where there is a mismatch between the maturity profile of investments and the amounts required to pay withdrawals.
- Regulatory Risk: The risk of future changes to tax or unit trust legislation which could affect the operation of Whai Rawa or members' entitlements, or of the Trust Deed being amended in a manner permitted by law that has the effect of reducing entitlements.
- Member Risk: The risk of any withdrawal being forfeited by you if you become bankrupt or unable to manage your affairs.
- Administrative Risk: The risk of technological or other failure impacting on Whai Rawa or financial markets.
One of the key functions of the Manager is to operate Whai Rawa in a manner that mitigates these risks as far as practicable.
What would happen if Whai Rawa was to be wound up?
In the unlikely event of the insolvency of Whai Rawa or if Whai Rawa is wound up, your liability to pay money to any other person as a result would be limited to the money you were required to pay to Whai Rawa up to that date and cannot extend beyond the amounts in your Member Accounts.
In the event of Whai Rawa being wound up or put into liquidation the following claims will rank ahead of claims by you:
- any payment preferred at law, (for example, payments to secured creditors);
- taxation;
- any unpaid liabilities of Whai Rawa.
Following payment of the above claims and the deduction of the charges associated with winding up Whai Rawa, the remaining funds would be paid to Members in proportion to the value of their Member Accounts in Whai Rawa.
There are risks involved in any investment. The Manager of Whai Rawa intends to invest conservatively. The aim is to try to ensure Whai Rawa earns a reasonably consistent level of income and doesn't experience the big gains and losses that higher risk investments are exposed to. All steps have been taken to achieve positive returns on your Whai Rawa investment, however there are no guarantees. Any loss over the medium term (i.e. 1-2 years) is highly unlikely.