KiwiSaver Series with Matthew D’Souza: How to Maximise Your Government Contribution and Secure an Extra $521!
KiwiSaver expert, Matthew D’Souza, answers all of your KiwiSaver questions and provides some insightful commentary on one of our most talked about financial initiatives.
With the end of June rapidly approaching, it’s that time of year again when you have the chance to boost your KiwiSaver account with a generous $521 from the government. This annual boost is commonly referred to as the “member tax credit” or government contribution, and it’s one of the most effective ways to grow your retirement savings. But it’s important to act now—this is your last chance to receive the full $521 before the rules change from 1 July 2025.
What is the KiwiSaver Government Contribution?
The KiwiSaver government contribution is a benefit available to most KiwiSaver members aged between 18 and 65. Currently, for every dollar you contribute, the government will match it with 50 cents, up to a maximum of $521.43 per year. That means if you contribute at least $1,042.86 to your KiwiSaver account before 30 June 2025, you’ll receive the full contribution.
This generous incentive makes a real difference to your long-term savings—but only if you make the most of it before the rules change.
How Do You Get It?
Fortunately, claiming the government contribution is straightforward. As long as you meet the eligibility criteria (i.e. age and residency) and contribute enough, your KiwiSaver provider will apply for the contribution on your behalf after 30 June.
There are several ways you can contribute:
One-off lump sum: You can make a direct payment into your KiwiSaver account if you're short of the annual minimum.
Payroll deductions: If you’re employed and earning over $35,000 a year, your regular 3% contributions will typically meet the target.
Voluntary contributions: If you’re self-employed or not contributing through wages, consider setting up a regular payment—just over $20 per week will get you there.
Are People Missing Out?
Surprisingly, many do. In the last financial year, only half of KiwiSaver members received the full government contribution. Another 587,000 received a partial payment. That leaves a huge number of Kiwis missing out on hundreds of dollars of free money.
Groups most likely to miss out include:
Women
Younger people
Members in default KiwiSaver funds
But no matter your age or employment status, it’s never too late to start. Small steps now can lead to big gains later thanks to compound interest.
Why Does It Matter?
You might be thinking: does $521 really make that much of a difference?
Yes—it really does. Here’s what that annual boost could grow to by age 65:
A 25-year-old in a growth fund could end up with an extra $55,808
A 35-year-old in a balanced fund might gain $26,917
A 45-year-old in a conservative fund could see around $13,319
That’s just from the government contribution—without even factoring in your own savings. It’s free money with long-term value.
Tips to Ensure You Don’t Miss Out
1. Check Your Contributions
Log into your KiwiSaver provider’s portal and see how much you’ve contributed this financial year. If you’re under the $1,042.86 mark, top it up with a lump sum before 30 June.
2. Set Up an Automatic Payment
To avoid scrambling next year, consider setting up a weekly payment of around $24. That way, you’ll automatically hit the target without needing to think about it.
⚠️ Important Update: Changes from 1 July 2025
From 1 July 2025, the KiwiSaver government contribution is changing:
The government will contribute 25 cents for every $1 you put in,
Up to a new maximum of $260.72 per year (down from $521.43),
Still requiring a $1,042.86 annual contribution to receive the full amount.
This year is your final opportunity to receive the full $521.43 contribution. After this, the incentive will be halved. If you’ve ever thought about making a top-up or getting ahead—now’s the time to act.
Make the Most of It
Every dollar you contribute now is a step closer to a stronger financial future—and right now, it’s a chance to double your reward before it halves.
If you’d like to discuss your KiwiSaver plan, check your contributions, or find out how to get the most from your fund, reach out to Union Plus or your financial adviser today.
Happy saving—and here’s to a brighter retirement!
About the Author
Having lived on three continents and in six cities, Matthew D’Souza is a citizen of the world! And it is that very background that helps him relate to clients from all walks of life. After catching the advisory bug young, Matthew left a successful career in performance marketing to guide his clients through the financial maze of life. With a special focus on KiwiSaver and financial planning, his aim is to delight every client with the retirement that they dream of. Seeing his clients' success is what drives him and gets him leaping out of bed in the mornings!