The New Zealand government contributes money to your KiwiSaver account each year you qualify, up to $260.72, simply for contributing yourself. This is known as the government contribution, and it is one of the most straightforward financial benefits available to working-age New Zealanders.
Inland Revenue calls it the government contribution, and some provider websites still use the older name “member tax credit” (the SuperLife website, for example, links “to find out more about the Government’s member tax credit”).
Despite how valuable it is, many KiwiSaver members either do not know they are entitled to it, do not receive the full amount, or accidentally miss out entirely. This guide explains exactly how the government contribution works, who qualifies, how to make sure you get the full amount, and what happens if you fall short.
This article is part of the KiwiSaver contributions guide. For context on all three contribution sources, see KiwiSaver Contribution Rates Explained and the employer contributions guide.
What Is the Government Contribution?
The government contribution is money the government adds to your KiwiSaver account. It pays 25 cents for every dollar you contribute, up to a maximum of $260.72 per KiwiSaver year. This rate was halved from 50 cents (and the cap from $521.43) effective 1 July 2025 (IRD, Getting the KiwiSaver government contribution). A new eligibility rule was introduced the same date: members with taxable income over $180,000 for the relevant tax year (1 April to 31 March) no longer qualify.
The KiwiSaver year runs from 1 July to 30 June, not the calendar year. Your provider applies for the government contribution after 30 June each year. Inland Revenue says to check your account after the end of July, and it may take until the end of August.
| Contribution you make | Government contribution received |
|---|---|
| $200 | $50 |
| $500 | $125 |
| $800 | $200 |
| $1,042.86 | $260.72 (maximum) |
| $2,000 | $260.72 (capped — no more above $1,042.86) |
The government contribution is capped at $260.72. Contributing more than $1,042.86 yourself does not increase the government contribution: it stays at $260.72 once you hit the threshold.
Who Qualifies for the Government Contribution?
To receive the full government contribution, you need to meet all of the following for the whole KiwiSaver year. If you meet them for only part of the year, the contribution is based on how many days in the year you met them (IRD: KiwiSaver benefits):
- Be a KiwiSaver member
- Be aged 16 or over (extended down from 18 from 1 July 2025)
- Live mainly in New Zealand (IRD also lists government employees serving outside New Zealand and some volunteers working overseas for approved charities)
- Have taxable income of $180,000 or less for the relevant tax year, 1 April to 31 March (a new cap introduced from 1 July 2025)
- Have been a KiwiSaver member for the full year (pro-rated in your first year, see below)
- Contribute yourself: payroll deductions, payments to Inland Revenue or payments direct to your provider all count, including voluntary payments made during a savings suspension
- Not have reached the KiwiSaver eligibility age of 65
Age limits: 16 to 65
- Under 16: KiwiSaver members under 16 do not qualify for the government contribution, even if they are contributing.
- 16 and 17: Since 1 July 2025, 16- and 17-year-olds who meet the other criteria qualify for the government contribution. This was previously restricted to members 18 and over.
- 65 and over: The government contribution stops entirely once you turn 65. If you turn 65 partway through a KiwiSaver year, you receive a pro-rated government contribution for the portion of the year you were under 65.
Living mainly in New Zealand
The residence condition is that you live mainly in New Zealand, not whether you are a tax resident. IRD also lists two groups who can qualify while overseas: government employees serving outside New Zealand, and people working overseas as a volunteer (or for a token payment) for a charity on IRD’s approved list. If you stop meeting the condition part-way through the year, the contribution is based on the days you did meet it. If you are on a temporary work visa, the same test applies: whether you live mainly in New Zealand (see KiwiSaver on a work visa).
Pro-rating in your first year
In the first year you join KiwiSaver, the maximum government contribution is reduced proportionally to how many days of the KiwiSaver year you were a member.
Example: You join KiwiSaver on 1 January (halfway through the year, which runs 1 July – 30 June). Your maximum government contribution for that year is approximately $130 (50% of $260.72), and you need to contribute approximately $521 yourself to claim it.
How Much Do You Need to Contribute?
To receive the full $260.72 government contribution, you must contribute at least $1,042.86 of your own money between 1 July and 30 June.
In weekly terms, that is approximately $20.06 per week.
| Frequency | Amount needed for full government contribution |
|---|---|
| Weekly | $20.06 |
| Fortnightly | $40.11 |
| Monthly | $86.90 |
| Annually (lump sum) | $1,042.86 |
Will your regular contributions get you there?
For most employees earning above a threshold salary, automatic payroll contributions at 3.5% (the minimum since 1 April 2026) will exceed $1,042.86:
| Salary | 3.5% annual contribution | Full government contribution? |
|---|---|---|
| $25,000 | $875 | ❌ Short by $168 |
| $29,796+ | $1,043+ | ✅ Yes |
| $30,000 | $1,050 | ✅ Yes |
| $50,000 | $1,750 | ✅ Yes |
| $70,000 | $2,450 | ✅ Yes |
If your salary is below approximately $29,796 and you contribute at 3.5%, your automatic contributions will fall short of the $1,042.86 threshold. You will receive a partial government contribution proportional to what you contributed, but you can top up before 30 June to claim the full amount.
Only your personal contributions count
Only your own contributions count toward the $1,042.86 threshold. Inland Revenue lists what doesn’t count: employer contributions, past government contributions, and funds moved from Australian retirement schemes. Your own money can come from salary and wage deductions, payments to Inland Revenue, or payments direct to your provider.
Am I Getting the Full Amount? A Checklist
Work through these in order to see whether you’re on track for the full $260.72 this KiwiSaver year (1 July to 30 June).
- Are you eligible? You need to be aged 16 to 65, have taxable income of $180,000 or less for the tax year (1 April to 31 March), live mainly in New Zealand, and be contributing to KiwiSaver (who qualifies above has the full list).
- Are you enrolled? If you’ve never joined, there is nothing to pay the contribution into: see how to enrol in KiwiSaver.
- What have you contributed so far this year? Check your contribution history for the current KiwiSaver year with your provider or in myIR. Subtract it from $1,042.86; dividing the remainder by the weeks left until 30 June gives the weekly amount still needed.
- Are you on a savings suspension? Payroll deductions stop during a savings suspension (contribution holiday), so the threshold is only reached through payments you make yourself, before 30 June.
- Are you self-employed or not working? With no payroll deductions, everything has to come from direct payments: about $20.06 a week, or $86.90 a month, reaches the threshold. See KiwiSaver for the self-employed.
- Is your contribution rate enough on your pay? At the 3.5% default rate, payroll deductions alone reach the threshold on a salary of about $29,796 or more (the table above). Below that, a voluntary top-up or a higher contribution rate closes the gap.
- Did it arrive? Inland Revenue says to check your KiwiSaver account after the end of July, that it may take until the end of August, and to contact your provider if you think you should have received some or all of it.
How to Top Up to Get the Full Government Contribution
If your automatic contributions will not reach $1,042.86 by 30 June, you can make a voluntary lump sum contribution directly to your KiwiSaver provider to top up.
Steps:
- Log in to your KiwiSaver provider’s website or app
- Check your total contributions for the current KiwiSaver year (1 July – 30 June)
- Calculate the shortfall: $1,042.86 minus your contributions to date
- Make a one-off payment directly to your provider for the shortfall amount — bank transfer or online payment
- Ensure the payment arrives with your provider by 30 June
Timing matters: Contributions must be received by your provider by 30 June. Allow time for the transfer to clear, so do not leave it until the last working day of June.
See voluntary KiwiSaver contributions for how to pay your provider directly, including a worked top-up example.
How the Government Contribution Is Paid
You don’t apply for the government contribution yourself: your KiwiSaver provider applies for it after the year ends.
Timeline:
- 30 June: the KiwiSaver year closes
- After 30 June: your provider applies to Inland Revenue for the contribution
- End of July to end of August: Inland Revenue says to check your account after the end of July, and that it may take until the end of August
- Your provider invests it: the contribution is added to your balance and invested in your chosen fund
You do not need to do anything to receive it if you have met the eligibility criteria. It simply appears as a deposit in your KiwiSaver transaction history, typically labelled “Government Contribution” (some providers still use the older name).
What Reduces or Stops the Government Contribution?
Savings suspension (contribution holiday)
If you are on a savings suspension for the entire KiwiSaver year and make no voluntary payments yourself, you receive no government contribution, because you made no personal contributions during the year.
If you are on a savings suspension for part of the year, your government contribution is based on what you contributed during the year, including any voluntary payments you made while on the suspension. If those contributions total less than $1,042.86, you receive a partial government contribution.
Leaving employment and not contributing
If you leave employment and do not make voluntary contributions in the gap between jobs, your government contribution for that year will be based on whatever you contributed while employed. If that total is below $1,042.86, a top-up made by 30 June that brings your total up to that amount gets you the full government contribution, provided you meet the other conditions for the whole year.
Turning 65
Your eligibility ends when you turn 65. If this happens mid-year, IRD pro-rates the government contribution for the portion of the year you were under 65.
Moving overseas
If you stop living mainly in New Zealand (for example, you move overseas permanently), you stop meeting the residence condition, and the contribution is based on the days in the year you did meet the eligibility requirements.
Being on a work visa with no entitlement
Some temporary visa holders do not qualify for the government contribution. Eligibility depends on whether you live mainly in New Zealand (or fit one of IRD’s other listed cases), not simply whether you are in the country. If you are uncertain, check with IRD or your visa provider.
The Government Contribution Over a Lifetime
The government contribution runs from age 16 to 65 (extended down from 18 from 1 July 2025), up to 49 years of eligibility. If you receive the full $260.72 every year for 49 years, that is $12,775 from the government flowing into your KiwiSaver account, before any investment growth.
That is the real value of not missing a year.
Government Contribution vs Employer Contribution: Key Differences
The government contribution and the employer contribution are both “extra” money added to your KiwiSaver, but they work differently:
| Government contribution | Employer contribution | |
|---|---|---|
| Who pays it | Government (IRD) | Your employer |
| Amount | Up to $260.72/year | Minimum 3.5% of gross earnings |
| When paid | Once per year, after 30 June (it may take until the end of August) | Each pay period |
| Requires employer? | No | Yes (employees only) |
| Tax applied | No tax deducted | ESCT deducted |
| Self-employed eligible? | ✅ Yes — if contributing | ❌ No |
| Paused by savings suspension? | No: voluntary payments you make still count toward it | Yes, unless your employment agreement says otherwise |
| Age limit | 16 to 65 | 16 and over and under 65 (employees) |
One important advantage of the government contribution over the employer contribution: it applies to self-employed people and contractors. If you run your own business and contribute at least $1,042.86 per year directly to your provider and meet the other conditions, you receive the full $260.72 government contribution. The employer contribution, by contrast, requires an employer. See the KiwiSaver for self-employed guide.
The Three-Source Total
The government contribution is the third of three sources that fund your KiwiSaver account. On a $60,000 salary at 3.5%:
| Source | Annual amount |
|---|---|
| Your contribution (3.5%) | $2,100 |
| Employer contribution (3.5%, net of ESCT ~17.5%) | $1,732 |
| Government contribution | $261 |
| Total into KiwiSaver per year | $4,093 |
The $261 government contribution represents 6% of the total flowing into your KiwiSaver, a meaningful portion that costs you nothing beyond your regular contributions. Missing it is a straightforward loss.
Checking Whether You Received the Government Contribution
To verify your government contribution was paid:
- Log in to your provider’s app or website and check your transaction history from the end of July (it may take until the end of August). Look for a deposit labelled “Government Contribution” or the older name.
- Check myIR: Inland Revenue says you can use myIR to see when the government contribution arrives in your account.
- Contact your provider: they can confirm whether a government contribution was received for a specific year.
If you believe you were eligible but can’t see the contribution in your account, Inland Revenue’s guidance is to contact your provider. Common reasons for not receiving it include: being on a savings suspension, falling short of the contribution threshold, or an incorrect date of birth on record.
Frequently Asked Questions
How much is the KiwiSaver government contribution in 2026?
The maximum government contribution is $260.72 per year, halved from $521.43 on 1 July 2025. To receive the full amount, you need to contribute at least $1,042.86 of your own money between 1 July and 30 June, and have taxable income of $180,000 or less for the relevant tax year (1 April to 31 March).
Is the government contribution automatic, or do I need to apply?
You don’t apply yourself: your KiwiSaver provider applies for it after 30 June, as long as you meet the eligibility criteria. Inland Revenue says to check your account after the end of July, and it may take until the end of August.
I only worked for part of the year. Do I still get the government contribution?
Yes, but only on whatever you contributed during the year. If your total personal contributions are less than $1,042.86, you receive a proportional government contribution. You can top up with a voluntary contribution before 30 June to reach the $1,042.86 needed for the full $260.72 (you get the full amount only if you were eligible for the whole year).
Does the government contribution count as taxable income?
No. Inland Revenue’s commentary on the original legislation treats the government contribution as excluded income for income tax purposes, and it is paid straight into your KiwiSaver account (more in KiwiSaver and your tax return).
What if I was on a savings suspension for part of the year?
Your government contribution is based on what you pay in yourself during the year, so paused payroll deductions earn nothing, but payments you make directly still count. If your own contributions for the year total at least $1,042.86, you receive the full government contribution (if you were eligible for the whole year). If not, you still get 25 cents for every dollar you paid in. A voluntary top-up before 30 June can make up any shortfall.
I’m self-employed. Can I get the government contribution?
Yes. The government contribution is available to all eligible KiwiSaver members aged 16–65 who live mainly in New Zealand (with some exceptions, such as government employees serving overseas) and have taxable income of $180,000 or less, and who are contributing to KiwiSaver, including the self-employed. To get the full amount, contribute at least $1,042.86 of your own money (paid to your provider or to Inland Revenue) between 1 July and 30 June, as well as meeting the eligibility conditions. There is no employer involved.
Can I get the government contribution if I’m not working?
Yes. Employment is not a requirement. As long as you are aged 16–65 for the whole year, live mainly in New Zealand, are enrolled in KiwiSaver, have taxable income of $180,000 or less, and contribute at least $1,042.86 during the year (via voluntary payments), you qualify for the full government contribution.
Does my employer’s 3.5% contribution count toward the $1,042.86 threshold?
No. Only your personal contributions count. Employer contributions are excluded from the government contribution calculation entirely.
What happens if I don’t claim the government contribution one year?
The government contribution is worked out for each KiwiSaver year (1 July to 30 June) from what you contribute in that year, and a voluntary top-up has to be made by 30 June to count towards it. If you miss a year, you can miss out on up to $260.72.
When exactly is the government contribution paid?
Your provider applies for it after the KiwiSaver year closes on 30 June. Inland Revenue says to check your account after the end of July, and that it may take until the end of August.
Key Takeaways
- The government contributes 25 cents for every $1 you put in, capped at $260.72/year (halved from 50 cents/$521.43 on 1 July 2025, with a new $180,000 income cap)
- To claim the full government contribution, contribute at least $1,042.86 between 1 July and 30 June, roughly $20/week
- Eligibility requires being aged 16 to 65, living mainly in New Zealand (with some exceptions), with taxable income of $180,000 or less, and contributing to KiwiSaver
- Your provider applies for the contribution after 30 June; Inland Revenue says to check your account after the end of July, and it may take until the end of August
- If your regular contributions fall short, make a voluntary top-up before 30 June
- Contributing less (for example during a savings suspension), moving overseas, and turning 65 can all reduce it
- Self-employed people can qualify, because the government contribution depends on your own contributions rather than on an employer
For the full contributions picture, see the contribution rates guide, the employer contributions guide, and the contributions hub.