Wholesale 1 PIE Trust: More about our approach

With Budget 2023 and the update to the tax rate for Trusts, investing in a PIE has become even more beneficial for some investors.
Helping good business owners through uncertain times

Budget 2023 brought with it an important update to the tax rate for Trusts. From 1 April 2024, the Trust tax rate will shift from 33% to 39% to align with the top personal income tax rate. In light of these changes, there’s one investment structure that stands out: Portfolio Investment Entities (PIEs).

Last month, we talked about how the PIE structure provides significant tax benefits for many investors, thanks to the tax rate on returns being capped at 28%. For wholesale investors, typically trusts or high-income earners, the 11% differential actually translates into paying 28% less tax on PIE investment returns vs non-PIE investments – quite a compelling advantage.

If you are like us and like to play around with financial calculators, put these tax impact assumptions into your future value calculations. Our estimate is that the compounded savings over 10 years are significant.

So, if the PIE structure was a good idea before, it’s an even better idea now. If you’d like to learn more about why our trusts are choosing to invest in PIEs, please contact us and we’ll be happy to set up a call. 


Investing in a Portfolio Investment Entity (PIE) can offer a tax advantage, particularly for high-income earners and trusts. And these tax benefits can compound over time, allowing investors to keep more of their returns. READ MORE HERE


Like to know more about our investment approach? We have learned a few things about making loans and investments over the past 20 years. We always take security for any loan and have maintained a conservative stance on loan-to-value (LVR) ratios in recent times. Find out more about our strategy, safeguards and current single asset class portfolio mix. READ MORE HERE

Give us a call on 09 215 9364 or email us at fundgrowth@merx.co.nz if you’d like to set up a time to talk.

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