SuperLife members who joined KiwiSaver before 1 July 2011 wanting the full government subsidy (called ‘member tax credit’) in 2012, need to have saved at least $1,043 in the year ended 30 June.

Under the member tax credit (MTC) rules, the government puts in $1 for every $2 you save, up to the maximum of $521.43 a year. This is paid tax-free to you in July each year.

So by 30 June 2012:

a)     If you’ve saved at least $1,043, you’ll get the maximum $521 MTC.

b)    If you’ve saved less than $1,043, the government will give you $1 for every $2 you’ve saved e.g. if you save $400, the government will contribute $200.

However, there are special rules to note:

a)     If you join KiwiSaver part-way through a year, you’ll receive an MTC based on the number of days in the year (1 July to 30 June) you’ve been enrolled.

b)    If you turn 18 in the year ended 30 June 2012, you’re eligible for the MTC for the period from your 18^th birthday to 30 June 2012.

c)     If you’re not normally resident in New Zealand, you don’t get the MTC except in a few special cases.

d)     You normally stop getting the MTC at retirement age (65) but will continue to be eligible if you’re in the 5-year minimum membership period e.g. if you enrol at 64, you’re eligible for the MTC until you’re 69.

30 June 2012 is half a year away, so there’s plenty of time to top up to $1,043 in KiwiSaver to capture the full government contribution – either by regular savings, or lump sum savings as you can afford them.

To organise your KiwiSaver top-up, fill out the Increase your KiwiSaver savings with MTC form.

If you have questions, call us on 0800 27 87 37 or email info@SuperLife.co.nz.