Annual member tax credit

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

Annual member tax credit

If you’re contributing and are eligible, the Government makes an annual contribution of up to a maximum of $521.43 a year to your KiwiSaver account.

This is known as the member tax credit (or MTC). The contribution is an easy way to increase your savings because the Government gives eligible members up to $521.43 a year.

Are you eligible?

You'll be eligible for the annual member tax credit 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 annual member tax credit. 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 the maximum member tax credit of $521.43. 

Member Tax Credit graph_Nov16

 

The member tax credit 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.

If you're only eligible for part of the year, you'll get part of the member tax credit. 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 member tax credit of $521.43. As it can take up to 3 business days for contributions to be processed, we suggest you contribute before 25 June each year.

How to work out if you have contributed enough

You should qualify for the maximum member tax credit 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 totaling 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.

Be prepared – set up a direct debit

Setting up a direct debit could make getting the maximum member tax credit 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
Join the ANZ KiwiSaver Scheme

Find out how to join or transfer today

Need financial advice?

Find out how ANZ can help

Guide and PDS

ANZ KiwiSaver Scheme