Snapshot of KiwiSaver
[ Last Updated 18 May 2007 ]
Short Description
In Budget 2007, the Government has significantly enhanced the incentives to save through KiwiSaver. These incentives include the provision of a member tax credit by the Government and increased employer participation in KiwiSaver schemes.
KiwiSaver is part of a package of Government initiatives designed to increase saving by New Zealand households.
It encourages a long-term saving habit and asset accumulation by those who want to save more for their retirement.
The Budget Initiative
In Budget 2007, the Government has significantly enhanced the incentives to save through KiwiSaver by:
- providing a tax credit to savers that matches their contributions into KiwiSaver (or a complying superannuation fund) up to a maximum of $20 per week ($1,040 per year) from 1 July 2007; and
- phasing in compulsory matching employer contributions from 1 April 2008 as follows:
| From |
Employer contribution
(as % of gross salary) |
| 1 April 2008 |
1 |
| 1 April 2009 |
2 |
| 1 April 2010 |
3 |
| 1 April 2011 |
4 |
The Government will provide employers with a tax credit that reimburses their contributions, up to a maximum of $20 per week ($1,040 per year) per employee from 1 April 2008.
For further information about the Budget 2007 Enhanced KiwiSaver Package please refer to the Treasury website, Inland Revenue website or KiwiSaver website.
MED's Involvement
The Insurance and Superannuation Unit within MED is responsible for the registration and regulation of KiwiSaver schemes and scheme providers. MED is also responsible for the ongoing policy work in relation to the regulatory controls on KiwiSaver and Superannuation schemes more generally.
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