KiwiSaver Government Contribution
The government adds 25% for every dollar you put into KiwiSaver between 1 July and 30 June, up to $260.72 a year. To collect the maximum you must contribute $1,042.86 of your own money. You must be aged 16 to 65 and earn $180,000 or less.
The four numbers that decide it
| Condition | Figure |
|---|---|
| Rate the government matches at | 25% |
| Maximum a year | $260.72 |
| Your own contributions needed for the maximum | $1,042.86 |
| Income above which you get nothing | $180,000 |
| Age range | 16 to 65 |
| The year that counts | 1 July to 30 June |
The year that counts is not the tax year. A contribution made on 1 July counts towards a different year from one made on 30 June, which is the trap for anyone who joined in autumn and assumed the 31 March cutoff applied.
What does not count towards the $1,042.86
Only money you put in yourself counts. Three things people reasonably assume are included are not:
- Employer contributions. The compulsory 3.5% your employer pays is excluded, even though it lands in the same account. This is the most common reason a full year of saving still returns less than $260.72.
- Past government contributions. Last year's payment does not help you qualify for this year's.
- Funds moved from an Australian retirement scheme. A transfer is not a contribution.
What does count: deductions from your salary or wages, payments to Inland Revenue, and payments straight to your scheme provider. A voluntary top-up counts as long as it reaches your provider by 30 June.
What you need to save to collect all of it
$1,042.86 across the year, spread whichever way suits. On the default 3.5% employee rate, a salary of about $29,796 clears it from deductions alone, with no voluntary payment needed.
| If you save | You need | Government adds |
|---|---|---|
| Weekly | $20.06 | $260.72 |
| Fortnightly | $40.11 | $260.72 |
| As one lump sum | $1,042.86 | $260.72 |
Someone on $45,000 contributing the default 3.5%
- 1.Gross salary for the year$45,000
- 2.Employee contribution at 3.5%This is the only part that counts$1,575.00
- 3.Shortfall against the full entitlement$1,042.86 is needed$-532.14
- 4.Government contribution earned without topping up25% of what was actually contributed$393.75
- Gained by paying the shortfall before 30 June$-133.03
The rate halved on 1 July 2025
The government contribution used to be 50 cents per dollar with a maximum of $521.43, and there was no income cap. Both changed on 1 July 2025: the rate is now 25%, the maximum is $260.72, and anyone earning over $180,000 receives nothing.
Pages still quoting $521.43 are describing the old rules. The qualifying contribution of $1,042.86 did not change, which is why the older figure is easy to miss: you save the same amount and receive half as much.
When you get part of it instead of all of it
Falling short of $1,042.86 does not disqualify you. You still receive 25% of whatever you did contribute. The entitlement is also pro-rated by the number of days you were eligible if:
- you joined KiwiSaver part-way through the year
- you turned 16 part-way through the year, which was 18 before 1 July 2025
- you turned 65 part-way through the year
- you stopped meeting the eligibility criteria
Joining in February therefore collects a fraction of a full year, no matter how much is paid in before 30 June.
Next
- KiwiSaver contribution ratesThe 3.5% default and the four rates above it
- KiwiSaver employer contributionThe money that does not count towards this
- KiwiSaver savings suspensionWhat pausing costs you here
- KiwiSaver when self-employedWhere this becomes the whole return
Common questions
How much is the KiwiSaver government contribution?
The maximum is $260.72 a year. The government adds 25% of what you contribute between 1 July and 30 June, so $1,042.86 of your own money collects all of it.
Do employer contributions count towards the government contribution?
No. Only your own money counts. Your KiwiSaver employer contribution, past government contributions and funds transferred from an Australian retirement scheme are all excluded from the $1,042.86. This is the single most common reason someone who contributed all year still receives less than the maximum.
What income disqualifies you from the KiwiSaver government contribution?
An annual taxable income above $180,000 means you receive nothing at all. It is a cliff, not an abatement. The cap arrived on 1 July 2025, at the same time the rate halved from 50 cents to 25% per dollar.
When is the KiwiSaver government contribution paid?
Your scheme provider applies after 30 June. The money usually appears between the end of July and the end of August, and it goes into your KiwiSaver account rather than your bank account. If it has not arrived by then, contact your provider rather than Inland Revenue.
Do you get the government contribution if you are self-employed?
Yes. KiwiSaver when you are self-employed strips out the employer contribution and the tax on it, but the government contribution survives untouched. It is the only external money entering the account, which is what makes $1,042.86 the figure to plan around.
What happens to the government contribution during a savings suspension?
Deductions stop, so nothing accrues towards it. You can still pay your provider directly during a KiwiSaver savings suspension to keep qualifying, and that is the one reason to keep contributing while paused.
Where these figures come from
2026–27 tax year (1 April 2026 – 31 March 2027). Last verified 30 July 2026.
Related
- KiwiSaver contribution ratesWhat comes off your pay in the first place
- KiwiSaver employer contributionMoney that does not count towards this
- KiwiSaver savings suspensionPausing, and what it costs you here
- KiwiSaver when self-employedWhere this becomes the only external money
- employer superannuation contribution taxThe tax that does not touch this payment