Are you on track for the full $521 KiwiSaver bonus?

Statistics show that each year, many KiwiSaver members miss out on an easy way to boost their savings – simply because they didn’t know about it. 

We’re talking about the annual Government contribution of up to $521.43.  

Here’s how it works, how to check if you’re on track, and what to do if you’re not.  

How the Government contribution works

Let’s start with the basics. The Government will contribute $0.50 for every $1 you put into your KiwiSaver account in the year to 30 June, up to a maximum of $521.43 per year.  

That means you receive a boost from the first dollar you contribute in the year between 1 July and 30 June. But if want to receive the full top-up, you need to contribute at least $1,042.86 during the same period.  

Please note that only your personal contributions count. Employer contributions and past investment gains don’t count towards the Government contribution threshold. 

In a nutshell: If you contribute $500, the Government adds $250. If you contribute at least $1,042.86, you get the maximum $521.43. If you contribute $2,300, you still get $521.43. 

Who’s eligible?

You may qualify for the Government contribution if you: 

  • Are aged 18 to 64, and 
  • Mainly live in New Zealand. 

You don’t need to apply: it’s automatic as long as you meet the eligibility and contribution requirements.  

If you turned 18 or 65 partway through the year, or joined KiwiSaver during the year, you can still get a partial contribution. The amount you’re eligible for will be based on the number of days you were eligible between 1 July and 30 June. 

How to check if you’re on track

Not quite sure if you’ve contributed enough? It’s easy to check: 

  • Log into your KiwiSaver provider’s portal and look for a tracker or transaction summary.  
  • Alternatively, log into your myIR account on the Inland Revenue website to see how much you’ve contributed this ‘KiwiSaver year’.  

Not on track? Consider a top-up

Remember – the magic number is $1,042.86. If you’re under that amount, you can top up with a voluntary contribution before 30 June to make up the difference. We recommend doing so by mid-June to allow enough time for your payment to be processed and reflected in your account before the 30 June cut-off. 

Topping up is easy, and every bit helps. You can: 

  • Make a lump sum contribution through your online banking (search for your KiwiSaver provider as a payee).  
  • Set up a recurring payment. 
  • Increase your contribution rate temporarily to boost your total. Contribution rates can be changed once every three months, unless your employer agrees to a shorter timeframe. 

Pro tip: Even a small contribution unlocks 50 cents on the dollar from the Government. So don’t stress if you can’t make up the full amount. Every dollar still gets a boost! 

Make the most of it long-term

$521.43 might seem small in the grand scheme of things, but over time, those extra dollars can add up significantly. It adds to your investment base, helping you benefit even more from compounding returns.  

If you make it a habit to maximise this bonus every year, that’s over $5,200 in Government contributions over a decade – plus all the investment growth on top. 

Can we help you?

Need help checking your contributions or figuring out how much to top up? Get in touch with your Invest Link adviser today. We’re here to help you make the most of every opportunity to grow your future wealth.  

Disclaimer: The information provided in this article is intended for general informational purposes only and does not constitute financial advice. Every individual’s financial situation is unique, and financial decisions should be made based on your specific circumstances and goals. We recommend consulting with a qualified financial adviser before making any investment, insurance, or mortgage-related decisions. Mortgage Link, Insurance Link, Invest Link, and FG Link are part of the Link Financial Group, offering tailored advice and services to help you achieve your financial goals.