The government puts in 25 cents for every dollar you contribute, up to $260.72 per year. Most people leave some of it on the table without realising.
The government contributes 25 cents for every dollar you personally contribute to KiwiSaver between 1 July and 30 June. The maximum is $260.72 per year, which requires a minimum personal contribution of $1,042.86. Your employer contributions do not count toward triggering the government contribution.
If eligible for only part of the year, the maximum is calculated proportionally by days.
Your provider automatically claims the government contribution on your behalf. It is usually deposited into your KiwiSaver account between late July and the end of August each year - no application needed.
No. Only your personal contributions count - the amount deducted from your pay at your chosen rate (3%, 4%, 6%, 8% or 10%). Your employer's 3% compulsory contribution does not count. So if your employer contributes $2,000 and you contribute $800, only your $800 counts toward the $1,042.86 minimum for the full government contribution.
You still receive a proportionate government contribution - 25 cents for every dollar you did contribute. If you contributed $500, you receive $125 in government contribution. You do not need to hit $1,042.86 to receive anything; that is only the threshold to receive the full $260.72 maximum.
Yes. If you have not contributed enough through your regular deductions to maximise the government contribution, you can make a voluntary lump sum contribution directly to your KiwiSaver provider before 30 June. The total of your regular contributions and any voluntary contributions counts toward the $1,042.86 minimum. This is particularly useful for the self-employed, people who took time off work, or those on a low contribution rate.
Correct. The government contribution is not available to individuals with taxable income above $180,000. This income cap was introduced as part of the KiwiSaver changes effective from 1 April 2024. If your income is close to $180,000, be aware that the test is on taxable income - which may differ from your gross salary depending on deductions and other income sources.
Self-employed people are not automatically enrolled and do not have employer contributions. To receive the government contribution, you need to enrol voluntarily and make personal contributions yourself - either by direct debit or lump sum to your provider. You need to contribute at least $1,042.86 between 1 July and 30 June to get the full $260.72. Set up a regular automatic payment if possible to avoid missing the year-end date.
Issue 6 of The Southern Portfolio covers KiwiSaver strategy in full - fund selection, contribution rates, and how it fits your wider portfolio.
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