Will you receive the KiwiSaver Government Contribution this year? Provided you meet the criteria, you’ll get an extra $521.43 deposited into your KiwiSaver account to help you save for your retirement.
What is the Government Contribution?
Every year, the Government makes an annual contribution into your KiwiSaver account as long as you meet the eligibility requirements. For every dollar you contribute (excluding employer contributions) the Government pays 50 cents, up to a maximum payment of $521.43. So to qualify for this extra money, you need to have contributed $1,042.86 throughout the KiwiSaver year (that’s 1 July – 30 June).
Who is eligible to receive this?
Anyone between the ages of 18-65 who lives in New Zealand and is a member of KiwiSaver is eligible to receive this contribution.
You won’t get the full contribution if you turn 18 part-way through the year or if you join KiwiSaver part-way through the year, but you will receive a contribution based on the number of days in the year you’ve been a member.
What if I haven’t contributed $1042.86 throughout the year?
If you haven’t made the full contribution, you will still receive 50 cents for every dollar you did contribute between the 1st of July and 30th June.
To receive the full amount, you can make a voluntary payment to top up your contributions to $1042.86 – as long as it’s received by 30th June, you’ll be eligible for the entire $521.43.
If you’re self-employed and/or are not contributing regularly, it’s a good idea to check your KiwiSaver balance to see how much more you need to contribute to make up $1042.86 before the end of June.
Do I need to do anything?
All you need to do is make sure you’ve contributed at least $1042.86 throughout the KiwiSaver year. If you’re not sure, you can check your balance or ask your KiwiSaver provider.
After the 30th of June, your KiwiSaver provider will apply for the contribution on your behalf. It will automatically be paid into your KiwiSaver account around the end of July, but it could take until the end of August to show up.
If you’d like to look at your options for maximising your KiwiSaver, get in touch with our team of friendly advisers today!