Are you ready for the KiwiSaver Government contribution this year?
Did you know each year you could get an extra $521.43 added to your KiwiSaver account from the NZ Government?
It’s called the KiwiSaver Government contribution, and it’s one of the great perks of being a KiwiSaver member.
In 2023 we helped our members get over $48 million paid out in Government contributions, which is a fantastic feat that we’re keen to repeat this year!
Read on to find out how to make sure you get your full Government contribution below.
How does the KiwiSaver Government contribution work?
The Government will contribute 50 cents for every dollar you put into your KiwiSaver account up to a maximum of $521.43.
So, to get the full amount, you need to contribute at least $1042.86 into your KiwiSaver account - this equates to around $20 a week over a year.
The Government contribution is paid out during July or August each year, so the cut-off to make sure you qualify for the payment is 30 June 2024. (Although we recommend getting any final contributions into your account by the 28th of June, to ensure they are processed in-time).
Only your employee or voluntary contributions count towards the $1,042.86. Employer contributions, previous Government or tax contributions and any transfers from other Superannuation Schemes aren’t counted toward the $1042.86.
What’s the eligibility criteria?
As well as making the minimum contribution, there are a few other eligibility considerations to be aware of to get this year’s contribution:
- Be aged between 18 and 65 years
- Have been a KiwiSaver member since 1 July 2023
- Be mainly living in New Zealand
If you joined KiwiSaver after 1 July 2023, or turned 18 or 65 part-way through the year, you'll get a pro-rata amount for the days you were eligible.
Exception for over 65 years:
If you are over 65 you may still be eligible for the Government contribution if you joined KiwiSaver before turning 65 and have been a member for less than five years. You must also have joined a KiwiSaver Scheme before 1 July 2019 and not made any retirement withdrawals.
Self-employed or not working?
Don’t stress, as long as you meet the eligibility criteria, you can still get the Government contribution by making voluntary contributions directly to your KiwiSaver account.
To find out how to make voluntary contributions, click here.
Want to check how much you’ve contributed to your KiwiSaver account? You can check how much you’ve contributed so far in your Generate account.
Head to your Transaction Statement and use the filter to show “Contributions” between 1 July 2023 and today. And then review the “Employee contributions”.
You can also check how much you’ve contributed by logging into the IRD website.
If you haven’t used this service before, you will need to register. Once you are logged in, select KiwiSaver from accounts and you can view your deductions from salary and wages under Contribution Summary.
If you have any questions or want to check your eligibility, please don’t hesitate to get in touch with us.
You can call on 0800 855 322 or email us at info@generatekiwisaver.co.nz