Get Your Full Tax Credit

Read More

There are very few people who, if offered a 50% guaranteed return on their money, would turn it down, particularly with investment returns being so low at present. Yet every June, thousands of people miss such an opportunity by failing to realise that their KiwiSaver contributions are less than what is required to get the full Member Tax Credit. In order to get the full credit of $521, contributions for the year 1 July to 30 June need to be $1,042. Topping up your contributions to that level means that for every dollar you put in, you get a tax credit of fifty cents; a 50% guaranteed return.

This should be of particular interest to you if:

  • You have stopped working temporarily, for example to have a family
  • You work part-time
  • You are paid a low income
  • You are self-employed and not on PAYE
  • You are on PAYE for only some of your income

Member tax credits are paid in July based on contributions up to 30 June. It is important to check every June that you are on track to get your full Member Tax Credit. Usually your KiwiSaver provider will send this information to you. Rather than putting in a lump sum top-up every June, you can make your life simpler by setting up a direct debit to your KiwiSaver fund every month to make up the difference. That way, you don’t have the problem of having to find a lump sum each June. Your total contributions each month should be at least $87. Your regular voluntary contributions can be changed at any time if necessary.

Of course, while you are checking your contributions you should also check that your tax rate is correct and that you have chosen the most appropriate investment option for your funds.

Related Articles

Liz Koh

Budget Winners and Losers

The latest Government budget had something for everyone but while most households will be a few dollars a week better off, there are some clear winners and losers. In the winners’ corner are businesses, those on high incomes, and savers. The biggest losers are property investors who have built large portfolios financed partly by tax rebates.

Read More »

Top Up or Miss Out

The end of June is an important date for KiwiSaver members. The financial year for KiwiSaver runs from 1 July 2009 to 30 June 2010 and if you have contributed at least $1,040 to KiwiSaver during that time, you will be eligible for the full amount of Government tax credit to be paid into your KiwiSaver account in July.

Read More »

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Helping You Live your retirement To the Max

Keep in touch

Fill in your details and we’ll get back to you in no time.