Worth checking to make sure you get your full entitlement.
If anything hopefully this serves as a reminder to check for yourself.
The Kiwisaver year is different from the tax year and runs from the 1st July to the 30th June - if you have not contributed the full amount by the 30th June then you will miss out.
What is the Government Contribution?
The Government contribution is an annual contribution to reward you for growing your KiwiSaver. For every dollar you put into your KiwiSaver account, the Government will put in 50 cents – up to a maximum of $521.43 a year. To get that full amount, you need to contribute at least $1,042.86 by June 30th every year - the equivalent of just over $20 per week. If you join KiwiSaver or turn 18 partway through the year, your Government Contribution will be pro-rated.
If you’re an employee and are working full time, you’ll probably hit your minimum contribution without noticing. However, it’s always good to check your contributions for the year to make sure.
If you work part time or have had a change in your employment situation over the past year you should check now to make sure you have received your full entitlement.
Who can get the contribution?
Generally speaking, you’ll be eligible to receive the Government contribution if you meet the following requirements.
- You’re a contributing KiwiSaver member.
- You live mainly in New Zealand.
- You’re aged 18 or older.
- You aren’t eligible for a retirement withdrawal.
If you joined KiwiSaver on or after 1 July 2019, you can get the government contribution up until you turn 65. If you joined KiwiSaver before to 1 July 2019, you can get the government contribution up until you turn 65, or have been a KiwiSaver member for 5 years, whichever is the later.
If you join, turn 18 or reach the age of eligibility to stop contributing part-way through the year, the government contribution is based on how many days in the year you've been a member.
If you do not contribute $1042.86 in the year, the government will still contribute 50 cents for every dollar you save. For example, if you contribute $50 you will get a government contribution of $25.
You don’t have to do anything to claim the Government contribution. Your KiwiSaver provider will make the claim on your behalf. The contribution will appear in your KiwiSaver account within a month of your provider making the claim.
How do I know how much I have contributed?
You can check myIR and the 'Contributions Summary' section to see if you have contributed over the $1042.86.
Remember that there is a delay in registering this from your provider so it may not be completely up to date.
The best way is to go direct to whoever your Kiwisaver provider is and check there to make sure you have contributed enough and if necessary top it up direct with your provider.
My employer has their own Superannuation scheme, which we can cash out when we leave (rather than 65). Does anyone know the easiest way to join Kiwisaver, without my employer contributions going to Kiwisaver? I just want to put the minimum payments into Kiwisaver each year.