Annual Government contribution

As well as your savings, the Government may also contribute money to your KiwiSaver account.

Annual Government contribution

If you’re contributing and are eligible, the Government contributes 50c for every dollar you contribute to your KiwiSaver account, up to a maximum of $521.43 a year.

This is known as the Government contribution, formerly called the member tax credit (or MTC). 

When it comes to saving for your retirement, every little bit helps. So make sure you try to get the maximum Government contribution every year, because it can add up to a whole lot more by the time you retire.

Are you eligible?

You'll be eligible for the annual Government contribution if you:

  • are aged 18 to 64 (or older if you've been a member of KiwiSaver for less than five years), and
  • mainly live in New Zealand

If you’re only eligible for part of a year, you’ll get part of the Government contribution. The calculation of the amount will be based on the number of days in the year you were eligible.

How does it work?

The Government will contribute 50 cents for each dollar you contribute, up to a maximum of $521.43. 

The Government contribution is calculated for a year that begins on 1 July and ends on 30 June. It’s paid into your KiwiSaver account shortly after 30 June (usually by the end of August).

If you're only eligible for part of the year, you'll only get part of the Government contribution. The calculation of the amount will be based on the number of days in the year you were eligible.

 

How can you get the maximum? 

You need to contribute at least $1,042.86 a year (from 1 July to 30 June) to your KiwiSaver account to get the maximum Government contribution of $521.43. As it can take up to 5 business days for contributions to be processed, we suggest you contribute before 24 June each year.

How to work out if you have contributed enough

You should qualify for the maximum Government contribution if you've been a KiwiSaver member for the full year (from 1 July to 30 June) and all of the following apply:

  • you're employed
  • you earn more than $35,000 per year
  • you contribute at least 3% to KiwiSaver.

OR if you've been contributing $20 a week, on average, for the full year (from 1 July to 30 June).

OR if you've made one or more lump sum contributions totalling at least $1,042.86 between 1 July and 30 June.

What if you haven’t contributed enough to get the maximum?

If it doesn’t look like you’ll contribute at least $1,042.86 to your KiwiSaver account from 1 July to 30 June each year, you can make a lump sum contribution to make up the difference or you can set up a regular contribution.

Please note that your contributions will only be eligible if they are invested in your KiwiSaver account by 30 June each year (we encourage you to top up before 22 June to make sure your contribution is processed by the KiwiSaver year end date of 30 June). 

Be prepared – set up a direct debit

Setting up a direct debit could make getting the maximum Government contribution just that little bit easier. While $1,042.86 may sound like a lot, in reality it’s only $20 a week.

 The fine print Hide
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