What are Member Tax Credits?
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. The maximum annual Member Tax Credit you are entitled to is $521.43. To get the full Member Tax Credit automatically you have to contribute at least $1,042.86 a year (01 July to 30 June). Employer contributions and Government contributions do not count towards eligibility for this credit. The Government pays 50 cents for every dollar of member contributions annually 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. If you contribute less than $1,042.86 from your pay, you can make voluntary contributions to ensure you receive the full Member Tax Credit payment from the Government.
Who is eligible for Member Tax Credits?
The Member Tax Credit will be paid each year (around July/August) to members of a KiwiSaver scheme or until you are eligible to withdraw your savings, provided:
- You are 18 or over, and
- You mainly reside in New Zealand except for: a government employee who is serving outside New Zealand, or a person who is 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 Schemes Act 1992.
What if I turn 18 part way through a year?
When you turn 18, you will receive a Member Tax Credit for the number of days in the year (01 July to 30 June) that you are 18.
What happens to Member Tax Credits when I turn 65?
Once you turn 65, if you have been in KiwiSaver for more than 5 years your entitlement to Member Tax Credits ceases. If you have not been in KiwiSaver for five years by the time you turn 65 then your entitlement to Member Tax Credits will continue until you have been in for five years. In order to receive these Member Tax Credits in this case you will need to contribute the required minimum of $1,042 into your KiwiSaver account.
When Are Member Tax Credits Paid?
Your KiwiSaver Scheme Provide will claim the tax credit on your behalf after 01 July each year. You do not have to do anything. Your Member Tax Credit will appear in your KiwiSaver account within a month of us having made the claim.
Require further assistance?
Unsure of your contributions to date? You can contact the IRD to find the balance of your KiwiSaver account, furthermore if you would like to make an additional contribution please do not hesitate to contact us.