KiwiSaver changes in the 2014 tax year
If you're an employee
The KiwiSaver rates change from the first pay period starting on or after 1 April 2013. This means that if you are currently contributing the minimum of 2%, your rate will automatically change to 3%. However, you'll still be able to select a higher employee contribution rate of 4% or 8%.
KiwiSaver rate change - when it takes effect
The minimum contribution rate for employers and employees is increasing from 2% of gross salary or wages to 3%. This applies from the first pay period starting on or after 1 April 2013.
This means if a pay period spans 1 April then the rate (for that pay only) will stay the same as it was for the previous pay. From the next pay, the employer must use the new rate.
If you're under 18 and enrolled in a KiwiSaver scheme
As part of the Government 2012 Budget, the tax credit for children was repealed from 1 April 2012 and the entitlement to claim it was withdrawn in May 2012.
This means if you're a KiwiSaver member, under 18, and you start working, even if it's a part-time job, KiwiSaver contributions will be deducted from your wages. You can choose whether you'd like to contribute 3%, 4% or 8% of your pay. If you're over 18, you'll be entitled to employer contributions.
You will need to complete a KiwiSaver deduction (KS2) form and give it to your employer. Employers are not required to make compulsory employer contributions on your behalf.
Date published: 22 Mar 2013