The changes introduced in New Zealand Government's budget 2010 has brought strength in the economy as it seeks to reduce the top tax rate on PIEs to 28% from 30% from October 1.

Following this, the lower PIE tax rate will also report a dip with fall in income tax rates. This brings good news for KiwiSaver whose funds are essentially PIEs.

Those who find KiwiSaver out of their expenses may find some options of joining it in October after the tax cuts.

Due to the increment in GST, the prices are bound to rise. Psychologically, the plan will appear to be simple to the people. To add to that the simultaneous increase in GST and decrease in the income tax will allow savings.

Spending money makes one pay the tax. If the money is saved, obviously, the tax is also saves. KiwiSaver covers nearly one-third of the country's population.

Yet, there are a number of people who don't have any association with KiwiSaver. There are some misconceptions which are responsible for it. Some are of the view that the schemes are applicable only for the employees.

Deloitte tax partner Greg Haddon said, "It probably creates a compliance nightmare for PIE administrators. A lot of the larger publicly available PIEs tend to be annual attributors - they calculate it at the end of the year".