Top up your Kiwisaver account for full tax credit
There is a Member Tax Credit (MTC) that the government grants to anyone contributing the minimum $1042.86 to their KiwiSaver account each year.
This MTC is added to your account based on the annual contributions to 30 June. The maximum MTC awarded is $521.43 – matching 50 cents to every dollar invested to a maximum MTC of $521.43.
For many taxpayers who receive their income through PAYE deducted salary and who contribute to their KiwiSaver fund this may not be of too much interest as you may well have contributed sufficiently to receive your MTC in full.
However, for those who have not contributed so much, or who do not receive a PAYE deducted salary such as shareholder employees, sole traders and partners in partnerships, you may wish to consider a voluntary contribution in order to get your MTC.
You can do this by paying $1,042.86 into your Kiwisaver fund before 30 June. The instructions to do so are given here.
In my opinion this is free money being offered by the government as an inducement to save for my retirement. It’s not often they hand out free money and so I ensure that I don’t miss making my voluntary contribution each year.
Any opinion expressed above is my own and may not be suitable for your particular investment needs. We advocate the use of qualified financial advisors to help you understand your needs and invest wisely for your future.