Updated 01 April 2026
The Government announced a number of KiwiSaver changes in the 2025 Budget, which took effect from 1 July 2025 and are impacting KiwiSaver investors now.
As there are quite a few things that changed we’ve summarised them here for you:
New government contribution rate
- On 1 July 2026, the government’s annual contribution is now 25c for each $1 you contribute, up to $260.72 per year.
- You will need to contribute at least $1,042.86 a year to receive the full amount.
- If you earn more than $180,000 annually, you are no longer eligible for the government contribution.
- Further details about these changes can be found below or on the IRD website
Members who are 16 and 17 are now able to receive the government contribution
- From 1 July 2025, 16 and 17 year olds became eligible for government contributions, and from 1 April 2026, they became eligible for employer contributions.
Employee and employer contribution rates are increasing
- From April 2026, default KiwiSaver contribution rates increased:
- 1 April 2026, the rate rose from 3% to 3.5%
- 1 April 2028, it will increase further to 4%
Temporary rate reduction available
- From 1 February 2026, KiwiSaver members became able to apply to Inland Revenue for a temporary rate reduction to remain on 3% for up to 12 months, unless extended further.
Did you know?
The GoalsGetter KiwiSaver Projection Tool factors in the new default contribution rates.
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