Have you got your KiwiSaver top up from the government?
Time is running out to boost your KiwiSaver and grab that annual Government tax credit KiwiSaver top up! Act soon (before the weekend!), as deposits must be received by June 30th to qualify for the ‘Govt Tax Credit Top-up.’ Despite its name, this top-up isn’t about your taxes but securing an extra $521 annually from the government if you contribute at least $1,042 to your KiwiSaver. Remember, this top-up is available for individuals aged 18 to 65, whether you’re self-employed, employed, or even if you’re not currently working. The maximum annual benefit is $521, so contributing more won’t increase the top-up, but even small top-ups can make a difference. If you’ve contributed less than $1,042 this year, follow our simple guide below on internet banking or visit a Westpac bank to make your deposit. Don’t miss out on maximising your KiwiSaver benefits.
If you contribute at least $1,042 per annum to your KiwiSaver the Govt will give you an additional $521 per annum.
NB: only people between age 18 and 65 get the Govt tax credit top-up. Whether you’re self employed, employed or even if you’re not working (eg ‘stay-at-home-mums/dads) you can still get the Govt top-up.
The maximum the Govt will give you per annum is $521, so contributing more than $1,042 will not get you any more than $521.
But contributing less than $1,042 will see you get 50c per $ you contribute.
So even topping up by a small amount will benefit you.
As a guide: if you’re contributing the min 3% to your KiwiSaver and your wages or salary is around $34,700 then you will be already getting the maximum $521.
KiwiSaver was on hold for a period of time? Then you’ll need to check how much you need to top-up by referring to your KiwiSaver provider or checking your account online.
Self employed? If you are contributing at least $20 per week or $87 per month by direct debit then you will also get the maximum $521.
Unsure? Get in touch with us! Email or call my office and we can tell you the answer.
If you did not enrol in KiwiSaver via Acorn then I can’t help you this year. However I can solve this problem for future years if you ask me to enrol you in a scheme that I recommend to you.
WHAT TO DO IF YOU’VE CONTRIBUTED LESS THAN $1,042 THIS YEAR:
1. Internet banking direct to your KiwiSaver scheme
a) go to your internet banking site and make a ‘bill payment’ to your scheme.
b) In the bill payments area use the search facility to search for your KiwiSaver scheme as a new payee, then simply follow the instructions to complete the payment.
c) You’ll need your IRD number and your scheme membership number handy to insert into the payment details.
2. Internet banking via the IRD ‘Make a Tax Payment’ option (use this if you don’t remember which scheme you’re in)
a) Go to your internet banking site ‘make a tax payment’ area
b) choose the ‘Kiwisaver’ option
c) make your payment
3. If you don’t have access to online banking – go to the Westpac bank to make a deposit
Best wishes from Mike Bennett and your Acorn team.