Request Appointment Request Appointment
Engagement Terms Engagement Terms
Search Search
Contact Us Contact Us
You are here: Home > Resources > Tax Facts

Tax Facts - KiwiSaver

All New Zealand residents and people entitled to live here permanently are eligible for KiwiSaver.  All new eligible employees must be automatically enrolled in KiwiSaver.  However there are some employees who are exempt from automatic enrolment.  These include:

  • Those under 18 years of age
  • Casual agricultural workers or Election Day workers
  • Private domestic workers
  • Casual and temporary employees employed under a contract of service that is 28 days or less

Employees who are automatically enrolled can opt out but must do so within a specified time (from the end of week 2 of their employment to the end of week 8) by filing the prescribed from (KS10).

All eligible existing employees can join the scheme at any time they wish by notifying their employer.

The minimum employee contribution rate is 3% though employees can choose between the rates of 3%, 4%, 6%, 8% or 10%. If an employee does not elect a rate then the default rate of 3% will be used by the employer for contribution deductions made.

Compulsory Employer Contributions

Employers are required to contribute to their employees' KiwiSaver or complying superannuation fund where employees have opted into these schemes. The minimum compulsory employer contribution is currently 3%.

Employer contributions are subject to Employer Superannuation Contribution Tax (ESCT) on a progressive scale based on the employees' marginal tax rate.

Government Assistance

The government also:

  • Pays annual member tax credit (for those 18 and over) of up to $521.43
  • Funds a HomeStart grant through Housing NZ if the relevant criteria are met

Prior to 21 May 2015, the government made a $1,000 'kick-start' contribution, however this has ceased..

Note: There is no Crown guarantee of KiwiSaver schemes or investment products of KiwiSaver schemes.

Employers must:

  • Give new employees and other existing staff who are interested an Employee information pack (KS3)
  • Pass employees' details to Inland Revenue to enable them to be enrolled
  • Deduct contributions from employees' gross salary and pay these to IRD through the PAYE system

A list of KiwiSaver providers is available at www.kiwisaver.govt.nz

For more information on KiwiSaver and how this may apply to you give us a call or refer to the KiwiSaver for Employers information available on the IRD website.

Supplied by CCH Business Fitness NZ

Latest News

Keep up to date and read our latest blog posts.

Xero

Xero is online accounting software that has been designed for small to medium sized businesses. It makes managing the financial health of your business more transparent, straightforward and fun.

Find out more

Client Tools

View our handy online tools and resources.

Auckland Office 

13th Floor
92  Albert Street
Auckland CBD, 1010

Phone: (+64) 09 575 9873
Fax: (+64) 09 575 9863

Email: mgr@kinghans.co.nz

Northland Office

2 Broadview Road
Off SH11
Opua

Phone: (+64) 09 402 5133
Fax: (+64) 09 575 9863
Email: mgr@kinghans.co.nz