KiwiSaver is designed to help New Zealanders save for their future-whether it's buying your first home or retiring comfortably. But one key feature of the scheme often flies under the radar: the Member Tax Credit (MTC).
What Is the Member Tax Credit?
To encourage consistent contributions, the Government rewards active KiwiSaver members with a Member Tax Credit. For every $1 you contribute into your KiwiSaver account (this includes contributions from your own pocket or through your salary), the Government adds 25 cents-up to a maximum of $260.72 per year. Note that from July 2025, an income cap of $180,000 applies.
It's a 25 cents per dollar match, requiring at least $1,042.86 in personal contributions to claim the full credit. If you contribute that amount between 1 July and 30 June, you'll receive the full tax credit. That equates to just over $20 per week.
Why Does This Matter?
Put simply: it's free money. The Member Tax Credit more than offsets the income tax you paid to earn your contribution in the first place. If you're saving for a first home, it's a meaningful boost. And if you're saving for retirement, those annual top-ups-compounded over decades-can significantly increase your final balance.
What Should You Do Right Now?
Don't get bogged down in the math-just check that your contributions between 1 July last year and 30 June this year total at least $1,042.86. If they don't, top up your account before 30 June to maximise the credit.
Can I Use This for My First Home?
Yes-if you're eligible for a First Home Withdrawal, both your own contributions and the Member Tax Credit can be withdrawn and used toward your deposit.
Not Sure Who Your Provider Is?
You're not alone. Around 40% of Kiwis don't know who their KiwiSaver provider is. If you're unsure, visit the IRD website or get in touch with a KiwiSaver adviser who can help track it down.
The Key Takeaways
- •The Government adds 25 cents for every $1 you contribute to KiwiSaver annually, up to a maximum of $260.72 (from July 2025)
- •To receive the full credit, you must contribute at least $1,042.86 between 1 July and 30 June
- •You can use the MTC funds in your First Home Withdrawal
- •Set up a $20/week auto payment if you're self-employed or not contributing regularly
Need Help With Your KiwiSaver?
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