• Launched in July 2007.
• Main purpose is to help New Zealanders save for their retirement.
• Able to be used by first-home buyers towards their first home.
• Anyone entitled to live in NZ and who does so normally is entitled to join.
• You can choose to contribute 3%, 4%, 6%, 8% or 10% of your gross wage or salary.
• Employers have to contribute 3% too.

• If automatically enrolled you can ‘opt out’ (leave KiwiSaver), but only between 2 and 8 weeks of starting the job.
• You can choose to ‘opt in’ (join KiwiSaver) at any time – although once you do, you can’t then opt out.
• As an employee, you can change your contribution rate (3%, 4%, 6%, 8% or 10%) at any time.
• After 12 months in KiwiSaver you can take a break from saving if you wish (called a ‘savings suspension’).
• Once you’ve joined, you can make voluntary contributions (lump sums or regular automatic payments) at any time, either directly to your KiwiSaver provider or through Inland Revenue.

• What? FREE MONEY! The maximum annual entitlement is $521.43.
• Who’s entitled? Any contributing member aged 18 or over who’s living in NZ. Member tax credits cease when the member reaches the age of eligibility for NZ Super (currently 65) or has been a member for 5 years, whichever is later. You don’t have to be an employee to get them, everyone is entitled.
• How do I get them? To get the full $521.43, you’ve got to make a minimum KiwiSaver contribution of $1,042.86 per annum. If you contribute less, you’re still entitled to $0.50 for each dollar. Your KiwiSaver provider makes the claim on your behalf at the end of the year, so you can sit back and wait for the free money to get credited to your KiwiSaver!
• When do I get them? The KiwiSaver year runs from 1st July to 30th June. They will be claimed on your behalf, and you will received them in July.

• Eligible after three years of being a member of KiwiSaver.
• Eligible members can withdraw their KiwiSaver savings including tax credits.
• At least $1,000 must remain in the KiwiSaver account.
• Must intend to live in the property.

Second-chance

• Cannot have received the KiwiSaver first-home withdrawal before.
• You have previously owned a home, but at the time of your application NO LONGER have an interest in a property.
• Realisable assets have to be less than 20% of the house price cap for the area based on caps for existing properties (see below).

• Eligible after three years of regularly contributing to KiwiSaver (not just membership).
• If you are purchasing an existing/older home, the grant is $1,000 for each year of contribution to the scheme (up to 5 years, max $5,000).
• If you are purchasing a new home*, the grant is $2,000 for each year of contribution to the scheme (up to 5 years, max $10,000).
• These amounts are PER PERSON.
• Earned before tax income of $85,000 or less in the last 12 months. If there are two or more buyers, the combined before tax income has to be $130,000 or less.

* a new home or property bought off the plans OR land to build a new home on.

Second-chance

Realisable assets have to be less than 20% of the house price cap for the area for existing properties.

Pre-approval

You can apply for pre-approval prior to finding a property. This can help speed up the process and is valid for 180 days once granted.

$500,000 in Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Tasman District, Nelson City, Waimakariri District, Christchurch City, Selwyn District ($550,000 for new builds);

$400,000 in all other parts of the country ($500,000 for new builds).

• Many investments in NZ (including KiwiSaver) are structured as PIE (Portfolio Investment Entity).
• In a PIE, you pay the same, or less tax than you would in a non-PIE investment.
• The tax rates for PIE, or PIR, are 0%, 10.5%, 17.5% and 28%.
• It’s very important to choose the right PIR as you can’t claim back if you overpay.

If you are considering setting up a KiwiSaver for your children, take a look at our blog for some information about it all.