Don’t miss out on the Government’s $521.43 KiwiSaver freebie!

It’s that time of year again, the Government will soon be giving all KiwiSaver members a free top-up of $521.43 if you have contributed $1,042.86* between 1 July 2019 and 30 June 2020 towards your KiwiSaver.

This Government contribution was formerly known as Member Tax Credit. Each year between 1 July and 30 June, if you contribute $1,042.86, the Government will put in $521.43. This means they will match you 50c for every dollar you contribute up to that amount.

 

Am I eligible?

All KiwiSavers aged between 18 and 65 (and mainly living in New Zealand) are eligible, whether you are working or not.

*If you’ve just joined KiwiSaver within the year to 30 June 2020, the Government will contribute a pro-rata amount based on the number of days you have been in KiwiSaver. If you turn 18 partway through the year to 30 June 2020, you’re eligible for the number of days you are 18.

If you are over 65 you may still be eligible if you joined before 65 and have not been in KiwiSaver for five years.  You must also have joined KiwiSaver before 1 July 2019 and not made any retirement withdrawals.

 

How do I know I’ve paid enough in?

To check how much you have contributed through your wages/salary this year to qualify for the full Government contribution, login to myIR.  If you have not 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.

 

What should I do to plan ahead?

Are you going to miss out on free money?  Make sure you get in for next year, by setting up a direct debit or automatic payment to your KiwiSaver account.  If you put in $20.06 each week, this will ensure you have enough funds in your KiwiSaver to hit that minimum contribution amount next year.

For further details visit:

Inland Revenue website for KiwiSaver Benefits