People who joined KiwiSaver before 1 July 2014 wanting the full government subsidy in 2015 (called ‘member tax credit’), need to have saved at least $1,043 in the year ended 30 June 2015.

Under the member tax credit (MTC) rules, the government puts in $1 for every $2 you save in a year, up to the maximum of $521.43 a year. This is paid tax-free to your KiwiSaver Account in July each year.

So by 30 June 2015:

a)     If you’ve saved at least $1,043, you’ll get the maximum $521 MTC.

b)    If you’ve saved less than $1,043, the government will give you $1 for every $2 you’ve saved e.g. if you save $400, the government will contribute $200.

However, there are special rules to note:

a)     If you joined KiwiSaver part-way through the year, you’ll receive an MTC based on the number of days in the year (1 July to 30 June) that you were a member.

b)    If you turned 18 in the year ended 30 June 2015, you’re eligible for the MTC for the period from your 18th birthday to 30 June 2015.

c)     If you’re not normally resident in New Zealand, you don’t get the MTC for the period you are out of the country except in a few special cases.

d)     You normally stop getting the MTC at retirement age (65), but will continue to be eligible if you’re in the 5-year minimum membership period e.g. if you enrol at 64, you’re eligible for the MTC until you’re 69.

There is still time to top up to $1,043 in KiwiSaver to capture the full government contribution – either by regular savings, or lump sum savings as you can afford them. It must be done by 30 June 2015.

If you have questions, call us on 0800 27 87 37 or email SuperLife@SuperLife.co.nz