A $1,000 kick start contribution will be credited to your account when it is opened.
The Government will help by matching your contributions with a tax credit of up to $20 per
week ($1,042.86 per year)
Minimum contribution of 2% if you are on PAYE or no minimums if you are self-employed,
not working or a child.
Matching employer contributions of up to 2% of salary, but your employer may wish to do more.
You can receive employer contributions tax free, up to 2% of salary. The tax exemption can significantly boost savings over time.
After contributing for 3 years, you could qualify for a first home withdrawal using both your
own and your employer’s contributions.
Housing NZ will offer a first home buyer’s subsidy up to $5,000 to KiwiSaver members,
based on $1,000 for each year of membership. The subsidy will be offered to members who
have been saving through KiwiSaver for three years, subject to a cap on income and house
price levels.
May 2011 Proposed KiwiSaver changes:
.
The 2011 Budget outlined changes to KiwiSaver that will reduce Government subsidies, and replace them with increased private contributions. This will reduce Government borrowing and lift national savings, while ensuring KiwiSaver remains an attractive option for savers.
The Specific changes proposed by the current Government are:
From 1 April 2012: The tax-free status of employer contributions to KiwiSaver and other complying superannuation funds will end. All employer contributions will be subject to Employer Superannuation Contribution Tax (ESCT) paid at employee's marginal tax rate.
For the year ending 30 June 2012 and beyond: The Member Tax Credit rate will be halved from $1 to 50c for every $1 contributed by members, up to $521 a year - half the current maximum. These payments are made annually after the government financial year, so the first payments at these new levels will occur in the second half of 2012.
From 1 April 2013: The minimum employee contribution rate will rise from 2 per cent to 3 per cent. This will apply to existing and new members. This will also be the new default rate, but members will still be able to select a higher contribution rate of 4 per cent or 8 per cent.
From 1 April 2013: The compulsory employer contribution rate will also rise to 3 per cent.
For more information or to sign up to KiwiSaver contact:
David Cutfield
1168 Amohia St, Rotorua
07 347 0579
Email: David
