Maximising your eligibility for KiwiSaver Member Tax Credits (MTC)
One of the best ways to make the most of your KiwiSaver investment is to take advantage of the Government’s annual contribution.
We believe its well worth doing and could add up to $521.43 to your KiwiSaver account each year.
In order to claim the maximum MTC of $521.43 you need to have made contributions of at least $1,042.86 into your account between 1 July 2015 and 30 June 2016 (the KiwiSaver Scheme year). Please note that employer contributions, amounts transferred from an overseas superannuation fund and government contributions do not count towards your MTCs.
How to make sure you make the most of it.
You should automatically receive the maximum MTC from the Government if one of the following applies to you:
You have been regularly contributing at least $21 a week between 1 July 2015 and 30 June 2016.
You have made one or more lump sum contribution totaling at least $1,043 between 1 July 2015 and 30 June 2016.
You are employed, earning more than $35,000 per year (before tax) and contributing the minimum 3% between 1 July 2015 and 30 June 2016.
For full contribution records you can contact the Inland Revenue Department on 0800 549 472.
What are your options?
If it doesn’t look like you’ll get there, you can top up your KiwiSaver account by making voluntary contributions. If you wish to do this you should act before the 30 June 2016 to ensure your contributions are processed by month end.
How to make a voluntary contribution
To make a voluntary payment into your KiwiSaver account, the simplest we have found is by:
Bill Payment via Internet Banking – You can make a contribution to your KiwiSaver account via your bank’s online banking facility.
Find the IRD as a Bill Payment Payee or choose the Pay Tax option and select ‘KiwiSaver Member Account KSS’ for tax type.
You will need to enter your IRD number into the appropriate field to ensure the payment makes it to your KiwiSaver account.
Your payment will then be transferred, via the Inland Revenue Department, into your KiwiSaver account.
To ensure you don’t miss out on your Member Tax Credits in the future, and to avoid making one-off payments each year, you may wish to consider setting up a regular payment into your KiwiSaver account.
If you have any questions please do not hesitate to contact us by email email@example.com or 09 438 5678.