Member tax credit

To help you save, the Government will make an annual contribution towards your KiwiSaver account as long as you are a contributing member aged 18 or over.

Who gets the member tax credit

The member tax credit will be paid each year (around July/August) to members of a KiwiSaver scheme or a complying fund until you’re eligible to withdraw your savings, provided:

  • you’re 18 or over, and
  • you mainly reside in New Zealand except for:
    • a government employee who's serving outside New Zealand, or
    • a person who's working overseas:

How much member tax credit you can get

The maximum annual member tax credit you are entitled to is:

  • $1,042.86 for periods up to and including 30 June 2011
  • $521.43 from 1 July 2011 onwards.

To get the full member tax credit automatically you have to contribute at least $1,042.86 a year. Employer contributions, government contributions and amounts transferred from Australia under the Trans-Tasman retirement savings portability do not count towards eligibility for this credit.

From 1 July 2011 the Government will pay 50 cents for every dollar of member contribution annually up to a maximum payment of $521.43.  This means that you must contribute $1,042.86 annually to qualify for the maximum payment of $521.43.

If you contribute less than $1,042.86 from your pay, you can make voluntary contributions to ensure you receive the full member tax credit payment from the Government.

Work out how much you'll receive at 4%

Work out how much you'll receive at 3%

Joining part-way through a year

If you join KiwiSaver part-way through a year (1 July to 30 June), you’ll receive a member tax credit based on the number of days in the year you’ve been a member.

When you turn 18, you’ll receive a member tax credit for the number of days in the year (1 July to 30 June) that you are 18.

When member tax credit is paid

Your KiwiSaver provider will claim the tax credit on your behalf after 1 July each year. You don’t have to do anything. Your member tax credit will appear in your KiwiSaver account within a month of your provider making the claim.

Your member tax credit does not count as taxable income.

Member tax credit entitlement for a full year of membership from 1 July 2013 

If your income is... your annual contribution at 4% is... MTC entitlement and the voluntary contribution to reach $1042.86 is MTC entitlement
$15,000 $600 $300 $442.86 $521.43
$26,000 $1040 $520 $2.86 $521.43
$35,000 $1400 $521.43 $0 $521.43

Member tax credit entitlement for a full year of membership from 1 July 2013 

If your income is... your annual contribution at 3% is... MTC entitlement and the voluntary contribution to reach $1042.86 is MTC entitlement
$15,000 $450 $225 $592.86 $521.43
$26,000 $780 $390 $262.86 $521.43
$35,000 $1050 $521.43 $0 $521.43