Understanding ANZ PIE Fund tax benefits
How you could boost your investment returns. The ANZ PIE Fund is a tax-efficient investment that could deliver a better after tax return.
How the ANZ PIE Fund works
The ANZ PIE Fund is a Portfolio Investment Entity that operates under special tax rules. This means that the maximum tax rate on income earned in the ANZ PIE Fund is 28%.
The tax you pay on income earned from your ANZ PIE Fund investment is determined by your Prescribed Investor Rate or PIR (see below for more on your PIR and how to work it out). If you are paying income tax at a rate of 30% or higher, you’ll benefit from the difference between your income tax rate and the tax rate on your investment.
Here's an example
Ryan has $100,000 to invest. His income tax rate is 33% and he works out that his PIR is 28%.
He can invest in a traditional term deposit or an ANZ PIE Fund term investment. Both are offering a return of 3.5% p.a. for 12 months.
- If he invests in a traditional term deposit, he will receive $3,500 in investment income less tax at his income tax rate of 33%, giving him an after-tax return of $2,345
- If he invests in the ANZ PIE Fund term investment, he will receive $3,500 in investment income less tax at his PIR of 28%, giving him an after-tax return of $2,520 and an effective rate of return of 3.76% assuming the return is not compounded.
You may also benefit if you have a PIR of 10.5% or 17.5%. For more information and examples, see the ANZ PIE Fund information brochure.
Working out your PIR
If you're an individual, you can use the table below to help you work out your PIR. This table is intended as a guide only. If you're not an individual, e.g. a business or a trust (including trustees), or you want tax advice for your individual circumstances you should contact Inland Revenue or your tax professional to determine your PIR.
Chart text description
Are you a New Zealand tax resident?
If your answer is:
- No: Your PIR is 28%.
- Yes: Continue to the next question.
In either of the last two income years:
- Was your taxable income $14,000 or less, and
- Was your total income (taxable income and PIE income) $48,000 or less?
If your answer is:
- Yes: Your PIR is 10.5%.
- No: Continue to the next question.
In either of the last two income years:
- Was your taxable income $48,000 or less, and
- Was your total income (taxable income and PIE income) $70,000 or less?
If your answer is:
- Yes: Your PIR is 17.5%.
- No: Your PIR is 28%.
[End of text description]
If, after considering the two previous income years you qualify for two rates, your PIR is the lowest rate.
*Your attributed PIE income or loss for an income year is the amount of income or loss attributed to you by PIEs in that income year. This is recorded in the tax certificate issued by PIEs to you at the end of each income year. An income year generally runs from 1 April of the previous year to 31 March of the current year.
Working out your PIR if you're investing with another person
If you are investing jointly with another person and your PIRs are the same, tell us which investor to attribue the income to and the PIR that should apply. If your PIRs are not the same, we must give the income to the investor with the highest PIR. If you don't make a selection, we give the income to the first named investor at the default rate of 28%.
There are two ANZ PIE Fund options
Tools and calculators
We'll help you figure things out
Financial wellbeing
Financial wellbeing isn’t one-size-fits all. When it comes to money, your journey could be entirely different to the next person’s. Check out our guides – from starting a budget, to setting a savings goal.
Helping kids learn about money
Teaching kids how money works and encouraging good savings habits will help set them up well for the future.
Important information
ANZ Investment Services (New Zealand) Limited is the issuer and manager of the ANZ PIE Fund. A copy of the ANZ PIE Fund terms and conditions (PDF 218KB) is available from any ANZ branch. Investments in the ANZ PIE Fund are not deposits in or liabilities of ANZ Bank New Zealand Limited, Australia and New Zealand Banking Group Limited or their subsidiaries (together “ANZ Group”). Neither ANZ Group nor The New Zealand Guardian Trust Company Limited (the "Trustee") stand behind or guarantee ANZ Investment Services (New Zealand) Limited. Investments are subject to investment risk, including possible delays in repayment, and loss of income and principal invested. Neither ANZ Group nor the Trustee will be liable to you for the capital value or performance of your investment. Australian Prudential Regulatory Authority (APRA) regulates all Authorised Deposit Taking Institution (ADI) in Australia. Australia and New Zealand Banking Group Limited is an ADI however, ANZ Bank New Zealand Limited is not an ADI.
Our financial advice provider statement has some important information you should know about ANZ and our financial advice services. Please take the time to read it.
A copy of the General Terms and Conditions is available from any ANZ branch.