Member Tax Credits

The first thing to know about member tax credits is that they have nothing to do with tax. They are simply a cash payment from the government, calculated annually and paid into your KiwiSaver account.

The member tax credit isn‘t a gift like the $1000 kick-start. The maximum member tax credit contribution from the government is $521 per year. It is a 50 cent in the dollar match, so you need to contribute $1,042 (or $20 per week equivalent) to receive the maximum $521. So if you contribute, they contribute. If you don‘t, they don‘t.

There are some exceptions

  • Minors (those under 18) don‘t get member tax credits -- even if they are working and contributing to KiwiSaver.
  • If you leave New Zealand to live or work overseas, you will not be eligible for member tax credits while you‘re away, even if you keep on contributing to KiwiSaver. You need to let us know if this applies to you.
  • When you become eligible to withdraw from KiwiSaver, you can elect to stay in the Scheme and keep contributing, but you will no longer receive member tax credits.

Calculating tax credits

If you‘ve been a KiwiSaver member for more than a year, calculating your member tax credit entitlement is simple. As long as you make a contribution some time between 1 July and 30 June, the government will also make a contribution up to a maximum of $521. Your contributions can be made up from:

  • Employee contributions (through IRD)
  • Voluntary contributions (through IRD)
  • Voluntary contributions made directly to GMK by cheque and direct debit.

It won‘t matter if your payments are regular or lump sums. The amount does matter though; if you only put in $1000, you‘ll only get $500. If you put in $1042 you will get the maximum amount of $521 from the government. 

You can make top-up payments directly to GMK by cheque.

Joining KiwiSaver part way through the year

In your first year as a KiwiSaver member, the member tax credit is calculated a little differently. The maximum member tax credit you are eligible to receive in your first year is determined by which part of the KiwiSaver year (1 July to 30 June) you join or start contributing and the amount you contribute.

Unlike subsequent years, a lump sum of $1042 in your first year won't guarantee you the maximum member tax credit.

If you contributed in the first month you joined KiwiSaver your entitlement begins from the beginning of that month. Otherwise, your entitlement will begin from the exact day that you join KiwiSaver.

If you turn 18 partway through a year, your entitlement will be based on the number of days in the year you were 18.    

How do you know how much you‘ve contributed and how much you‘re eligible for?

  • If you make all your contributions directly to GMK via direct debit authority or cheque, you can log on to your account and check your contributions report to see how much you‘ve contributed.
     
  • If you make any contributions through your workplace, or via IRD, you should confirm how much you‘ve contributed by reviewing your payslips, or contacting IRD (0800 549 472). Please note that the dates on your Gareth Morgan KiwiSaver Scheme Contributions Reports for these payments refer to when GMK receives your payments, not when deductions were taken or your payments were made to IRD, so they will not be useful for calculating your member tax credit eligibility.

When will I see my money? It won‘t happen overnight, but it will happen.

We claim member tax credits in July of each year. Generally the turnaround between us submitting a claim to IRD and you seeing the money in your account will be about two weeks. Sometimes your member tax credits may be paid in stages as IRD process additional contributions for the KiwiSaver year after the member tax credit claim was made.  


If you have any questions please call us on 0800 GARETH (427384)