Protecting and helping families since 1985

Last minute reminder – Get the max Govt tax credit top-up for your KiwiSaver

If you’ve been meaning to top-up your KiwiSaver to get more of the annual Govt KiwiSaver top-up it’s not too late!
YOU HAVE UNTIL THIS WEEKEND TO MAKE A DEPOSIT TO YOUR KIWISAVER. Deposits must be rec’d before 30th June each year.
This top-up is called the ‘Govt Tax credit Top-up’. And because of this name many people are confused by it, thinking it’s to do with their taxes.

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 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.
If your 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.
If you’re self employed and contributing at least $20 per week or $87 per month by direct debit then you will also get the maximum $521.

If you’re unsure you can email or ring 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

 

Good luck and Best wishes from Mike Bennett and your Acorn team

 

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Mike Bennett

In 1985, after 7 years in the banking industry in NZ & London, Mike Bennett joined the Life Insurance Industry as an adviser. In 2001 he started “Acorn Insurance & Investment Ltd” with the key principle; “to satisfy the insurance and investment needs of New Zealanders with the best products and service possible”. To achieve the guiding principle of “best products and service” the “Acorn” uses various industry research tools to identify the best products and prices to meet our client’s needs. Acorn has agencies with most of New Zealand’s major insurance companies which means we are free to use whichever products best meet our client’s needs. Believing that if we get it right for our clients we will achieve win-win solutions. We also recognise that nearly all insurance solutions are a compromise between the benefits you’d like to have versus the premiums you’re prepared to pay – with this in mind we WON’T be trying to sell you more insurance than you need or want !!

2 Comments

  1. How much do I need to contribute to make the contribution $1042.00?

    Reply
    • Hello Sue.. I’ll ring you with the information.
      Regards, Mike

      Reply

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