Making the Most of Your KiwiSaver: What You Need to Know About the Member Tax Credit
If you're a KiwiSaver member, there's a good chance the government is willing to give you some free money each year. This money is called the KiwiSaver Member Tax Credit. It’s one of the easiest ways to boost your retirement savings without doing much at all yet many people either don’t know about it or miss out by not contributing enough.
Here’s how it works, how much you could get, and how to make sure you don’t miss out.
What Is the KiwiSaver Member Tax Credit?
The Member Tax Credit (MTC) is a government contribution to your KiwiSaver account. For every dollar you contribute, the government adds 50 cents — up to a maximum of $521.43 per year. You don’t need to apply for it; as long as you’re eligible and making contributions, it’s added automatically to your KiwiSaver account after the end of each financial year.
Who Is Eligible?
To qualify for the tax credit, you need to:
Be aged 18 or over
Live mainly in New Zealand
Not yet be eligible to withdraw your KiwiSaver (generally, under age 65)
As long as you meet those criteria and contribute during the financial year (1 July to 30 June), you could receive some or all of the credit.
How Much Do You Need to Contribute?
To get the full $521.43, you need to contribute at least $1,042.86 of your own money during the KiwiSaver financial year. That works out to around $20 per week.
These contributions can come from salary deductions (if you're employed) or voluntary payments (if you're self-employed or not working). Employer contributions and government contributions don’t count toward the $1,042.86 — you need to contribute that amount yourself.
If you contribute less, you still get 50 cents on every dollar just not the full amount.
Why It’s Worth It
The Member Tax Credit is basically free money. It’s not taxed, it goes straight into your KiwiSaver account, and it helps your savings grow faster. For many people, it’s the only annual bonus they’ll receive that doesn’t depend on performance, paperwork, or approval.
Even if you can’t contribute the full amount, contributing what you can still helps. For example, if you contribute $500, you’ll receive $250 from the government.
Don’t Leave It Too Late
Because the financial year ends on 30 June, it’s important to check your contributions before then. If you’re behind, you can top up your account with a voluntary payment to reach the $1,042.86 target. Some people set a reminder in early June each year to check their progress.
You can log into your KiwiSaver provider’s website to see how much you’ve contributed so far. If you need to make a top-up, most providers allow you to do this online.
A Simple Step Toward a Bigger Retirement Fund
The KiwiSaver Member Tax Credit is one of the simplest and most generous parts of the KiwiSaver system. By contributing just a small amount regularly, you unlock a benefit that can add thousands to your savings over time.
It’s a small habit that pays off in a big way so don’t miss the opportunity. Check your contributions, aim for the full $1,042.86 each year, and let the government give your savings a little extra boost.