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KiwiSaver

Page updated 24 May 2012

KiwiSaver is a voluntary work-based savings scheme and designed to help people save for retirement.

KiwiSaver is administered by the Inland Revenue Department, but also fits with the Treasury's role of helping governments achieve higher living standards for all New Zealanders.

KiwiSaver was first announced in Budget 2005 and started on 1 July 2007. Detailed features of the scheme have undergone development over time, including reforms introduced in the Budget of May 2011 and intended to reduce the cost to Government while ensuring KiwiSaver remains an attractive option for savers.

Budget 2011 retained the $1,000 kick-start payment for new members but introduced the following changes to other features of the scheme:

  • From 1 April 2012 the tax-free status of employer contributions to KiwiSaver and other complying superannuation funds was removed. Employer contributions are now subject to the Employer Superannuation Contribution Tax, paid at the employee’s marginal rate.
  • From the year ending 30 June 2012 the Member Tax Credit will be paid at a rate of 50c for every $1 contributed by members, up to a maximum Government contribution of $521/year.
  • From April 2013 the default and minimum employee contribution rate, and the compulsory employer contribution rate, will rise from 2% to 3%.

The Treasury's Role

The Treasury has provided the government with KiwiSaver advice and forecasting. It has also worked closely with State sector and other agencies to help them prepare for KiwiSaver, and to seek feedback and suggestions to improve the scheme. It has undertaken analytical work to evaluate the impact of the scheme on national saving.

KiwiSaver is administered by the Inland Revenue Department (IRD).

Treasury Information on KiwiSaver:

External Information on KiwiSaver

Further information about KiwiSaver is available on the following external websites:

 

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