Under legislation and Government policy applying as at August 2015 (both of which are subject to change) the key KiwiSaver savings incentives are as follows:
Ongoing Government contributions: If you are aged between 18 and 64 (or you have reached age 65 but still have fewer than 5 years’ KiwiSaver membership) then, while you reside mainly in New Zealand and contribute to the BCF Scheme, you will be eligible for annual contributions to the BCF Scheme from the Government, at the rate of 50 cents for every dollar that you contribute, up to a maximum Government contribution of $521.43 per year (which equals about $10 a week) per full year of membership.
Compulsory employer contributions: If you are employed and aged between 18 and 64 (or you have reached age 65 but still have fewer than 5 years’ KiwiSaver membership) then, while you contribute to the BCF Scheme from your pay, your employer must also contribute to the Scheme for your benefit (on top of your pay, unless you have agreed otherwise) at the rate of 3% of your salary or wages.
Additionally, a KiwiSaver HomeStart Grant of:
- $1,000 for each year of KiwiSaver contributions (maximum $5,000) if you are buying an existing home, or
- $2,000 for each year of KiwiSaver contributions (maximum $10,000) if you are buying or building a new home,
may be available you if you qualify for a home purchase withdrawal, have been making regular KiwiSaver contributions for at least 3 years and meet all the other qualifying criteria (see www.hnzc.co.nz). If both you and your husband or wife are in the BCF Scheme, each of you may qualify to make a withdrawal and to receive a KiwiSaver HomeStart Grant to help you buy or build your first home. This benefit is subject to income and purchase price limits and other qualifying criteria. The KiwiSaver HomeStart Grant (if you qualify) is separate from, and payable in addition to, any first home purchase withdrawal you may be eligible to make from the BCF Scheme.