Don’t miss out on the annual government contribution to your KiwiSaver account. It’s a potential extra $521.43 each year, which can make a big difference to your retirement nest egg.
What is the government contribution and how do I get it?
It’s a good time to get thinking about the annual government contribution. As long as you’re eligible, for every $1 you contribute to your KiwiSaver account each year, the government will contribute 50c, up to a maximum of $521.43. To get the maximum amount, you need to contribute $1,042.86 during the KiwiSaver year (from 1 July to 30 June). This works out to just $21 a week to maximise your government contribution – that’s the cost of four coffees or one take-away meal per week, to get an extra $500 into your KiwiSaver account!
The government contribution can really add up over time so it’s worth making sure you get the full amount each year. To put this into perspective, after 10 years of getting the maximum amount, you’ll have had an additional $5,214.30 paid into your KiwiSaver account, which is pretty sweet. This is a great perk of having KiwiSaver – who doesn’t like free money? Whether you want to withdraw your money to help purchase your first home, or grow a healthy nest egg for retirement, this yearly top up can make all the difference.
If you’re not able to contribute the full $1,042.86, don’t worry, the government will still match anything up to that amount with 50c to your dollar. So, if you’re only able to contribute $500, you can still receive $250 from the government.
How do I know if I can get it?
To be eligible, you just need to meet a few criteria:
be a member of KiwiSaver;
be 18 years or older;
live primarily in New Zealand; and
are not yet entitled to withdraw your KiwiSaver for retirement
How do I know how I’m tracking?
You can log in to your online account to see how you’re tracking for this year’s government contribution. Both the contributions you make from your wages or salary, and any voluntary contributions are counted toward the government contribution. The contributions from your employer, Aussie super transfers or previous government contributions will not be counted.
You can also check your contributions through Inland Revenue directly by logging in to your MyIR account.
How can I make extra contributions?
The easiest way to make extra contributions is using your internet banking – you’ll find the details you need to use to make a payment by logging in to your online account. You can learn more here.
To make sure we have time to process your deposit before the government contribution cut off, we need to receive your contributions by 24 June 2024. The government contribution will be paid directly into your KiwiSaver account by the end of August at the latest.
What if I’m 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.
What if I turned 18 or 65, or joined KiwiSaver during the KiwiSaver year?
You may still be eligible for some of the government contribution:
If your birthday was part way through the KiwiSaver year, you will be eligible from the day you turned 18 until 30 June the following year.
If you are turning 65, you are eligible from 1 July until your birthday.
If you join KiwiSaver part way through the KiwiSaver year you will be eligible for the remainder of the year to 30 June.
This is called a pro rata amount. If you would like to find out how much you might get, feel free to contact one of our team who can calculate this for you. Otherwise, it works out to be up to approximately $1.43 worth of government contributions per day you are eligible.
Talk to us
If you would like to chat with one of our team about your investment or how you’re tracking towards the government contribution, you can give us a call on 0508 347 437, chat with us online or send us an email.
