Date: 15th May 2014
If you are a Kiwisaver member and you have made contributions during the year of $1042.86 or more, you are entitled to a Government contribution of $521.43. But don’t worry, if you haven’t made the necessary contributions, you still have until the 30th of June to make a voluntary contribution. Don’t miss out on this 50c in the dollar bonus!
If you’re self employed and not earning wages you may not have taken the time to set up regular payments to your Kiwisaver fund. So why not set up a weekly payment of just $21 so that you are automatically entitled to the government contribution next year?
To qualify for the Government contribution you need to keep in mind the following criteria:
If you are a Kiwisaver member and are a salary or wage earner, you and your employer will be making compulsory contributions and you may qualify for an automatic Government contribution.
If your annual income is $35,000 and you make contributions of 4%, your annual contribution will be $1400 and you will be automatically entitled to the Government contribution. Work out how much you’ll receive at 4%
If your annual income is $35,000 and you make contributions of 3%, your annual contribution will be $1050 and you will be automatically entitled to the Government contribution. Work out how much you’ll receive at 3%
But remember 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.
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.
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.
And more good news… your member tax credit does not count as taxable income!
More information about Kiwisaver.