“To help you save, the Government will make an annual contribution towards your KiwiSaver account” - Inland Revenue New Zealand
Let’s talk KiwiSaver, and not the usual ‘how you can make a contribution’ talk but rather how you can get a free contribution of $521.43.
A lot of people who are a part of the KiwiSaver scheme are unaware of the ‘member tax credit’ – which basically consists of FREE MONEY with no catches or unreasonable terms and conditions, just an encouragement for New Zealanders to join and make contributions to their KiwiSaver.
For every $1 you contribute to your KiwiSaver each year, the Government will also contribute 50 cents to your account, up to a maximum of $521.43. This is paid each year around July/August.
Although, your provider should claim this money for you on an annual basis a lot of New Zealander’s leave this money unclaimed. Over $1 Billion has been left unclaimed by Kiwis over the last three years.
Put into context, an 18-year-old receiving $521 would equate to an extra $24,507 by the retirement age of 65.
So how can I get it?
In order to qualify for the full $521.43, you will need to contribute $1042. 86 annually.
To give you an idea, at a 3% KiwiSaver contribution rate, your yearly contribution will be:
- $900 – on a $30,000 salary
- $1,200 – on a $40,000 salary
- $1,500 – on a $50,000 salary
- $2,400 – on a $80,000 salary
In order to receive this years member tax credit, you will need to have contributed $1,043 into your KiwiSaver account before Friday, 28th June. If you have not quite met the mark, you can make a manual payment. Be sure to make the payment as soon as possible as it can take a while for payments to be processed.
Need more info? Want help making a manual payment? Give us a call on 0800 771 331 and we will talk you through the steps.