Make sure you get your $521.43! Last year thousands of Kiwis missed out on this money because they simply didn’t know enough about it!
It is called a Government Contribution – For every dollar you put into KiwiSaver between 1 July and 30 June each year, the Government will put in 50c, up to $521.43. So to get the full amount, you’ll need to contribute $1,042.86 (or $20.06 per week).
If you have only just joined KiwiSaver (any scheme, not just Generate) within the year to 30 June, the Government will contribute a pro-rata amount based on the number of days you have been in KiwiSaver. If you turn 18 during the year to 30 June you’re eligible for the number of days you were 18 during the year. If you turn 65 part way through the year to 30 June, you are eligible for the number of days you were under 65 during the year. However, if you are over 65 you may still be eligible if you joined before turning 65 and have not been in KiwiSaver for five years. You must also have joined KiwiSaver before 1 July 2019 and not made any retirement withdrawals.
Your KiwiSaver contributions are automatically deducted from your PAYE and paid to your KiwiSaver account. Only your employee or voluntary contributions count towards the $1,042.86. Any employer contributions, government or tax contributions or Aussie Super transfers are not included.
If you are not earning enough to contribute the full $1,042.86 (approx 3% of a $35,000 salary each year) you can make direct contributions to your KiwiSaver account to get your full Government Contribution. See ‘How to make direct contributions’ below.
You can contribute directly to the Scheme. Any contributions made to your KiwiSaver account will count towards the $1,042.86. See ‘How to make direct contributions’ below.
If you have a partner or spouse who is in KiwiSaver and not working you may want to think about contributing to their KiwiSaver account before 30 June so they qualify for their $521.43. Don’t forget any children (who are over 18), as building up their KiwiSaver can be a great way for them to save for their first home.
You can make a payment from your internet banking to the Generate KiwiSaver Scheme application account 12-3244-0004191-00. Please include your surname, initials and your Generate Membership Number as a reference.
Or you can make payments through internet banking via the “Pay Tax” option to the IRD. Choose the option “KSS” (KiwiSaver Scheme) as the tax to pay and include your IRD number.
You can also log in to your online member account and set up a direct debit. Once you are logged in, you will find ‘Set up a Direct Debit’ on the left-hand side menu. Provide instructions such as amount, frequency, start date, bank account name and account number to set up a new direct debit.
To check how much you have contributed through your wages/salary this year to qualify for the full Government contribution, login to myIR. If you have not used this service before, you will need to register. Once you are logged in, select KiwiSaver from accounts and you can view your deductions from salary and wages under Contribution Summary.
PLEASE NOTE: If you are working out how much you need to contribute before 30 June you will also need to take into consideration any future contributions. Employee contributions from PAYE or Direct Debits, Automatic Payments scheduled to be made to your KiwiSaver account before 30 June.
See our Product Disclosure Statement and Supplementary Brochure on our website www.generatewealth.co.nz/forms-and-downloads