Will you be getting a $521 top up to your KiwiSaver?
KiwiSaver members are eligible for a Government Contribution each year, formerly known as Member Tax Credit. Basically, for every dollar you put into your KiwiSaver account, the Government puts in 50c, up to a maximum of $521.43.
You must contribute $1,042.86 annually to qualify for the maximum payment of $521.43. If you have been contributing for at least one year through your employer at the 3% rate and you earn over $34,766 per annum, your contributions will meet the minimum requirement to qualify for the full contribution.
From an investment perspective, the Government Contribution is possibly the best return you are ever going to get. But it gets paid once a year.
If you miss the deadline, you can't go back and claim it later.
Contributions are calculated from July 1st until June 30th. The money is paid into your KiwiSaver account in late July or August. If you haven't contributed enough, you can still top up your account to make sure you don't miss out.
You have until the end of June to make a voluntary contribution.
Talk to your KiwiSaver provider, they will let you know how to put some extra money into your fund. Or, you can let us do the work for you. Give us a call and we will be happy to help you with this process.