KiwiSaver changes from 1 April 2009

Here’s a summary of the key changes to KiwiSaver which took effect from 1 April 2009.

• The minimum employee contribution reduced to 2% of your before-tax pay. You can still contribute 4% or 8%.
• The compulsory employer contribution rose to a minimum of 2% from 1 April and won’t increase past that level. However your employer can still choose to contribute more than this amount.
• Your employer will pay tax on any contributions they choose to make above the compulsory rate of 2%. Tax on employer contributions above 2% will be either deducted from the amount the employer is paying towards your KiwiSaver account, or paid by your employer.
• The $40 annual fee subsidy has been removed.
• The employer tax credit has been removed (this won’t affect KiwiSaver members).

If you're already a member of KiwiSaver contributing at 4% or 8%, you can reduce your contributions to 2% by filling in a KiwiSaver deduction form (KS 2) and giving it to your employer. You won’t need to contact Inland Revenue. 

Note that reducing your contribution rate may affect the amount of member tax credit you receive.

Sorted’s KiwiSaver section has been revised to reflect the changes.  An updated version of our free booklet “KiwiSaver – Is it right for you?” is also available. 

Find out more about the key features of KiwiSaver.