1. Why is my investment return negative but I still pay tax or why is the full amount of my investment return not taxable?

Frequently Asked Questions

Why is my investment return negative but I still pay tax or why is the full amount of my investment return not taxable?

The way in which your investment in Generate KiwiSaver and Managed Funds is taxed is different to the way in which investment returns are actually measured and reported to you.

You are taxable on your share of dividends and interest income Generate KiwiSaver and Managed Fund earns but are specifically not taxable on your share of gains and losses from New Zealand and Australian shares Generate KiwiSaver and Managed Fund owns. With foreign shares, these are specifically taxable in a way that is different to the actual investment returns.

This means your taxable income from Generate KiwiSaver and Managed Funds can be higher or lower than the actual investment returns reported to you.