To help you save, the Government will make an annual contribution towards your KiwiSaver account as long as you are a contributing member aged 18 or over. Government contribution ceases when the member reaches the age of eligibility for NZ Super or has been a member for 5 years, whichever is the later.
Who gets the Government contribution
If you are a member of a KiwiSaver scheme or a complying fund you’re eligible for the Government contribution, provided:
- you’re 18 or over
- you’re not eligible to withdraw your savings, and
- you mainly reside in New Zealand except for:
- a government employee who’s serving outside New Zealand, or
- a person who’s working overseas:
- as a volunteer, or for token payment, for a charitable organisation named in the Student Loan Act regulations, and
- the work meets one or more of the requirements set out in the Student Loan Scheme Act 2011.
This is paid each year (around July/August).
How much Government contribution you can get
The maximum annual member tax credit you can receive is $521.43.
The Government will pay 50 cents for every dollar of member contributions up to a maximum payment of $521.43. This means that you must contribute $1,042.86 annually to qualify for the maximum payment of $521.43.
Employer contributions, government contributions and amounts transferred from Australia under the Trans-Tasman retirement savings portability don’t count towards your $1,042.86 contribution.
If you contribute less than $1,042.86 from your pay, you can make voluntary contributions to ensure you receive the full payment from the Government.
Joining part-way through a year (1 July to 30 June)
If you join KiwiSaver part-way through a year, you’ll receive the Government contribution based on the number of days in the year you’ve been a member.
When you turn 18, you’ll receive the Government contribution for the number of days in the year that you are 18.
The Government contribution ceases when you become eligible to withdraw your savings. You’ll receive the Government contribution based on the number of days in the year before you reach this.
When the Government contribution is paid
After 1 July each year, your KiwiSaver provider will claim the Government contribution on your behalf. You don’t have to do anything. This will appear in your KiwiSaver account within a month of your provider making the claim.
Your Government contribution does not count as taxable income.