KiwiSaver government contribution: how much, who gets it and how to claim the full amount
Every year the government adds money to your KiwiSaver, but only if you put enough of your own in. Most people never check whether they are getting the full amount. This page shows you how to.
In short
The KiwiSaver government contribution is 25 cents for every dollar you put in yourself, up to a maximum of $260.72 each KiwiSaver year (1 July to 30 June). You need to contribute $1,042.86 to get the full amount. You must be aged 16 to 65, mainly living in New Zealand, with taxable income of $180,000 or less.
The government contribution at a glance
| What | The current setting |
|---|---|
| What the government adds | 25 cents for every eligible dollar you contribute yourself |
| Maximum a year | $260.72 |
| Your own contributions needed for the maximum | $1,042.86 in the KiwiSaver year |
| The KiwiSaver year | 1 July to 30 June |
| Who is eligible | Aged 16 to 65, mainly living in New Zealand, with annual taxable income of $180,000 or less |
| What counts towards it | Your own contributions only. Employer contributions and money transferred from an Australian scheme do not count |
| Also known as | The member tax credit (the old name, which you will still hear) |
Scroll the table sideways to see every column.
How the KiwiSaver government contribution is worked out
The sum is simple. For every dollar you put in yourself during the KiwiSaver year, the government adds 25 cents, until you hit the cap of $260.72. To reach the cap you need to contribute $1,042.86 of your own money. Anything beyond that earns no extra from the government.
Here is how that looks at different levels. These are worked examples, not a forecast.
| You contribute in the year | The government adds | Full amount? |
|---|---|---|
| $200 | $50.00 | No |
| $500 | $125.00 | No |
| $800 | $200.00 | No |
| $1,042.86 | $260.72 | Yes |
| $2,000 | $260.72 | Yes, capped |
Scroll the table sideways to see every column.
It is paid after the KiwiSaver year ends on 30 June, and it is based on what you actually contributed. A part year or a smaller contribution earns a smaller amount, not the full $260.72. You do not apply for it. If you are eligible and you have contributed, it is worked out from your contributions, so it is worth checking that your provider shows it on your statement.
Who gets the government contribution
You need to tick three boxes:
- Your age. You must be aged 16 to 65.
- Where you live. You must mainly live in New Zealand.
- Your income. Your annual taxable income must be $180,000 or less.
On top of that, you have to be putting in money yourself. The government contribution rewards your contributions, not your balance, so a member who is not contributing does not receive it.
One catch trips up a lot of people. Your employer's contributions do not count. Only your own money counts towards the $1,042.86, and money transferred in from an Australian scheme does not count either. If your pay is modest, or you work part time, contributing the minimum may leave you short of the full amount.
How to make sure you get the full $260.72
Start by working out where you stand. On the 3.5% minimum, you reach $1,042.86 of your own contributions on roughly $29,800 of before-tax pay across the year. Below that, you will land short. Someone on $20,000 contributing 3.5% puts in $700, so the government adds $175 rather than $260.72.
If you are short, you have a few options.
- Top up before 30 June. A voluntary contribution counts towards the same total. Allow time for it to reach your provider before the KiwiSaver year closes, because a late payment lands in the next year.
- Check your contribution rate. Moving to a higher rate lifts what you put in each payday. Our contribution rates guide shows the options.
- If you are self-employed, set your own schedule. There is no employer doing it for you, so you decide the amount and the timing. The self-employed page covers how.
Before you top up, do the sums on your own situation. Make sure you have an emergency buffer first, so you are never tempted to raid your KiwiSaver later. The money is locked away for good reason, and the better way to see it is as long-term wealth. If you do end up in real trouble, the hardship withdrawal page explains what is and is not possible.
The KiwiSaver calculator will show you what steady contributions, including the government contribution, could build over time.
Why it is worth getting right
On its own, $260.72 does not sound life changing. But it goes into your account, it is invested like the rest of your balance, and it has years to grow. Missing out for a decade means missing out on more than the cheques themselves.
It is also one of the few parts of KiwiSaver you can check in five minutes. Look at what you put in last year, compare it to $1,042.86, and you know straight away whether there is money on the table.
If you would like a second pair of eyes on your contributions, your fund and your provider, that is what a free session is for. There is no obligation to act on anything afterwards.
This page is general information and not personal financial advice. Thresholds and rates are set by government and can change.
KiwiSaver government contribution, answered
How much is the KiwiSaver government contribution?
The government adds 25 cents for every eligible dollar you contribute yourself, up to a maximum of $260.72 in each KiwiSaver year, which runs from 1 July to 30 June. To receive the full amount you need to contribute at least $1,042.86 of your own money during that year.
Who is eligible for the KiwiSaver government contribution?
You must be aged 16 to 65, mainly living in New Zealand, and have annual taxable income of $180,000 or less. You also need to be making contributions yourself, because the government contribution is based on what you put in during the KiwiSaver year.
How do I get the full $260.72 government contribution?
Contribute at least $1,042.86 of your own money between 1 July and 30 June. On the 3.5% minimum rate that takes roughly $29,800 of before-tax pay. If you fall short, a voluntary top-up before 30 June counts towards the same total. Allow time for the payment to reach your provider before the year closes.
Do employer contributions count towards the government contribution?
No. Only your own contributions count towards the $1,042.86 you need for the full $260.72. Employer contributions and money transferred from an Australian scheme are both excluded, which can catch out part-time and lower-paid employees.
When is the KiwiSaver government contribution paid?
It is paid after the KiwiSaver year ends on 30 June and is based on the contributions you actually made. You do not apply for it. A part year or a smaller contribution earns a smaller amount rather than the full $260.72, so check your provider's statement to see what you received.
Written by Cameron Steele, Financial Adviser (FSP1010212).
How this page is kept accurate
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