A Member Tax Credit is a Government contribution to your KiwiSaver account.
Despite its name, it has nothing to do with your tax return. You don’t need to file a return to receive it. In fact, we take care of all of the detail for you.
Generally, to be eligible for a Member Tax Credit you must be over 18 years of age and not yet eligible to withdraw your KiwiSaver account balance (currently age 65, and after five years of membership in a KiwiSaver scheme or complying superannuation fund), have made personal contributions to KiwiSaver, and be a New Zealand resident.
For every dollar you put in between 1 July and 30 June, the Government pays an extra 50 cents to your KiwiSaver savings, to a maximum of $521.43. That means you would need to contribute at least $1042.86 each year to receive the Member Tax Credit (that is about $20 per week). If you have contributed less than $1042.86, the Member Tax Credit is adjusted on a pro-rata basis. Likewise if you are not in KiwiSaver for the full year, this Member Tax Credit is adjusted on a pro-rata basis (based on the number of days in the year you’ve been a member).
As a general rule, if you earn an annual salary or wages of $35,000 or more and your contribution rate is 3%, you will get the full Member Tax Credit. If you earn less than this, or you are self-employed and are not regularly contributing, you may want to consider topping up your KiwiSaver account to get the full $521.43.
Each July, we submit a claim on your behalf and arrange for this to be automatically credited to your account. If you are concerned you have not contributed enough to access the maximum Member Tax Credit, please get in touch and we can advise the value of your contributions for the current year.