Since it's launch on July 1st 2007 KiwiSaver has become an integral part of Kiwi's financial planning and saving and of the investment industry and culture in New Zealand.
It has been a number of years (fortunately) since there have been changes to KiwiSaver, the last changes being the elimination of fee subsidies and the halving of the Member Tax Credit (now called Government Tax Credit) from $1,042 to $521 a year and the abolishing of the $1,000 kick start. There have been other various changes along the years, but those are the ones that significantly impacted members.
Now, there are more changes. The Government is on its mission to save money and they have targetted KiwiSaver Government Tax Contributions to help them fund their other priorities.
The Government Tax Credit (GTC) is currently paid based on a year ending on June 30th to all people aged between 18 and 65 (with a couple of tweaks if you join KiwiSaver when you are say 63 or 64), and for every $1 you invest (up to $1,042) you get a Tax Credit paid into your KiwiSaver at the start of July of $0.50. So, put in $1,042 and you get $521.
From 1st July 2025 - this tax credit is halved. So if you are eligible, you will now get $260.72 - BUT if you earn over $180,000 you will not receive this credit. The other rules remain in place. However, the GTC will be paid to 16 and 17 year olds in the from 1st July 2025
Another significant change to KiwiSaver is that from 1st April 2026 the minimum contribution rates for employees will increase from 3% to 4% (but people will be able to apply to stay at 3% from 1 February 2026 temporarily). At the same time the contribution rates for employers will also increase. These increases will be staggered as follows:
Date | Employer Contribution (minimum) | Employee Contribution (minimum) |
|---|---|---|
Present | 3.00% | 3.00% |
01/04/2026 | 3.50% | 3.50% |
01/04/2027 | 3.50% | 3.50% |
01/04/2028 | 4.00% | 4.00% |
In addition, Employers will have to match the contributions of 16 and 17 year olds to KiwiSaver from 1st April 2026.
