The first thing to know about Government Contributions 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 maximum Government Contribution 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 Government Contributions - 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 Government Contributions 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 Government Contributions.