Member Tax Credit
Definition
A government contribution matching 25% of KiwiSaver contributions up to $260.72 per year for eligible members.
Key Takeaways
- Member Tax Credit provides 50 cents for every dollar contributed, up to $260.72 per year.
- Requires a minimum annual contribution of $1,042.86 to receive the full $260.72 credit.
- Automatically credited to KiwiSaver accounts once per year around July.
- Available to members aged 18+ who are not on a savings suspension.
Detailed Explanation
The Member Tax Credit (MTC), formerly called the Government Contribution, is a government incentive that encourages New Zealanders to save for retirement through KiwiSaver. The NZ government contributes 50 cents for every dollar you contribute to your KiwiSaver account, up to a maximum of $260.72 per year (requiring a minimum contribution of $521.43 annually).
To receive the full $260.72 MTC, you must contribute at least $1,042.86 per year to your KiwiSaver account. The MTC is automatically credited to your account once a year (around July) and is calculated based on contributions made between July 1 and June 30. The MTC is available to KiwiSaver members aged 18 and over who are not on a savings suspension.