How is the KiwiSaver annual Government contribution calculated?
The annual Government contribution (also known as a member tax credit) is calculated based on a year that begins on 1 July and ends on 30 June. To receive the full contribution you need to be an eligible member for the full year (from 1 July to 30 June) and pay at least $1,042.86 into your account during that year. This excludes any amounts transferred from an Australian complying superannuation fund and any contributions made by the Government or your employer.
If you have been an eligible member for the full year and contributed less than $1,042.86, then you will receive an annual Government contribution equal to half the amount you have contributed. For example, if your contributions were $500 over the year, then your annual Government contribution would be $250.
What if I joined KiwiSaver part way through the year (1 July - 30 June)?
If you joined KiwiSaver for the first time part-way through a year, your annual Government contribution will be based on the portion of the year you were an eligible member, as well as the KiwiSaver contributions you made.
For example, if you joined KiwiSaver on 1 January, for the year to 30 June, you'll receive $260.71 (provided you've contributed at least $521.43). This is half of the maximum annual Government contribution because you joined six months into the year.
Visit www.kiwisaver.govt.nz for details as to how your join date is determined.
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