NZ Herald 24 October 2020

AThe car purchase solution is easy. At ANZ you can raise your internet banking limit instantly by calling the contact centre. If you’re worried about the higher limit, lower it again after you’ve bought the car.

At TSB, you can’t raise the limit, but you can carry out as many transactions as you wish in any one day using two-factor authentication. So presumably you could pay for the car in four transactions.

“Customers can also make in-branch transactions of any amount with proof of identity, or call our contact centre to arrange payments, noting they will need to provide a signed written request for large amounts,” says a spokesperson.

On your question about the Reserve Bank, “Cheques are not legal tender, and the provision, writing and acceptance of cheques are at the individual discretion of banks, customers and third parties,” says a spokesperson.

“There are banks which continue to offer cheque services, with no plans to discontinue them,” he says. As I said two weeks ago, these include SBS and TSB.

“Meanwhile, banks will help customers wanting to make transactions beyond usual online limits — such as for a car purchase — by arrangement.

“The registration and supervision of banks by the Reserve Bank is focused on financial soundness and avoiding the significant damage to the financial system and economy that could result from the failure of a registered bank, and not on customer service offerings.”

A“Nasty, impractical and mean-spirited.” Ouch! In my defence, I was replying to a reader who gave no information about his circumstances. I surveyed nine banks and told him their cheque policies. I then concluded it wouldn’t work to switch banks, and added the bull horns bit.

I’m not sure it’s fair to apply that advice to the man you write about and then get cross with me. And it’s certainly not my fault that he faces problems with his banking.

Having said that, I feel for him, and asked Deputy Banking Ombudsman Sarah Parker for some suggestions.

“The decline in the use and acceptance of cheques does have implications for those members of our community who still rely on cheques for paying their bills,” she says. “We recommend customers who still rely on cheques talk to their bank about alternative ways to make payments.

“There are a number of options: internet banking is an option for those with access to a computer or smartphone as well as the internet. If not, phone banking, paying bills on the provider’s secure website, automatic payments and direct debits provide other alternatives.”

She adds that banks have obligations under the Code of Banking Practice to do their best to meet the needs of all their customers.

“Banks are also required to follow the NZ Bankers’ Association guidelines to help meet the needs of older and disabled customers.

“These guidelines set out that banks should provide user friendly websites, simple screens that support the use of electronic banking by older or disabled customers, easy prompts and access, and plain language information on how to use electronic banking.

“The guidelines also outline that banks will work to help older and disabled customers understand the range of banking products and services available, and how banks can support customers as their needs change.” You can read the guidelines at tinyurl.com/GuidelinesNZ

I hope this information is useful to you.

I also asked Parker about online bank accounts and fraud.

“We do not have any information about whether having accounts online increases the chance of fraud but it does change the nature of the fraud risks.

“Online banking scams, such as when a scammer pretends to be calling from a trusted company and uses remote access to your computer to gain access to your internet banking, continue to occur, and it’s critical that customers understand how to protect their banking.”

She adds that banks provide an online fraud guarantee. “The Code of Banking Practice obliges banks to reimburse victims of fraud where someone accessed and used their electronic banking or their card without authority, as long as the customer complied with its terms and conditions for electronic banking or card use, took reasonable steps to protect their banking, and wasn’t dishonest or negligent.

“Customers should ensure they never give out (or save) their password, or any code from the bank. Customers can also talk to their bank about getting extra protection for their accounts, e.g. two factor authentication and low transaction limits for online payments.”

ALess than $12 a week! Exploitation! Well actually it’s just inflation, which in the 70s and 80s approached 20 per cent a year.

Thanks for some good advice for grandma — and for her grandson. It seems his hopes shouldn’t be too high for his collectible investment.

ALast bit first. To my knowledge all KiwiSaver funds are PIE funds. And the same tax rate applies to all PIE funds, including the ones that work like bank term deposits.

On the taxable income totals, you’re right. You have to consider your totals in the previous two years. But the good part is you can use the lower of the two totals.

As you say, you’re disadvantaged for a year if your income drops a lot. But you get a break for two years if your income rises.

I didn’t go into that last week because it wasn’t relevant to my point — that there are PIE tax breaks for those on lower incomes too. What I said was already complicated enough for Saturday morning reading!

But the fact that you can use the lower of two taxable income totals is another tax advantage of PIEs.

AYou’re quite right. From November 9 people receiving NZ Super will no longer be able to “include” a non-qualifying (usually under 65) partner. But if you already do this, it will continue until the younger partner turns 65 and receives their own Super.

First, though, what’s this all about?

Currently a couple with a relatively low income, and only one partner qualifies for Super, can apply for the non-qualifying partner to be included in the qualifying partner’s NZ Super payments.

Each person receives the same amount of Super, which is less than the qualifying partner would otherwise have received.

The couple’s income must be below $58,371 a year. The lower the income, the more they get. And the way it works out, a couple ends up with more total Super only if their income is less than $30,716.40 (don’t you just love these government numbers!).

So why would a couple earning between those two totals want to use this facility? “Some people may choose to receive a reduced payment for a short period to ensure their partner is included before the policy ends,” says Kay Read at the Ministry of Social Development. This might happen if the couple expects their income to fall — and therefore their total Super to rise — before the included partner qualifies for Super themselves.

To qualify, “one or both partners can be in employment,” says Read. “If there is a regular pattern of work, we generally look at the couple’s combined income over the previous 52 weeks.” But if their income is likely to be different in the next year — perhaps they received a lump sum that won’t be repeated, or they have reduced working hours or retired — their income can be estimated for the coming 52 weeks.

Couples who want to apply should do so straight away, as it can take several days to process their application. As long as the qualifying partner has applied and the couple qualify before November 9, they won’t miss out if there are any processing delays.

“We encourage anyone in need of further assistance relating to these changes to get in touch with us. We can discuss their situation and provide further advice based on their individual circumstances,” says Read.

The change isn’t expected to leave people in the lurch. After November 9, the younger partner “will be able to apply for other kinds of assistance, for example, Jobseeker Support, Supported Living Payment or an Emergency Benefit,” she says.

There’s also another NZ Super change from November 9, and it’s one that will bring a few smiles.

Currently some people’s Super payments are reduced if their spouse or partner gets an overseas pension. That reduction will end for most people. “This recognises you as an individual with your own entitlement to superannuation,” says Work and Income. Applause!