KiwiSaver Government Contribution $260.72 Rules

The trap: this is not the 1 April to 31 March tax year, and it is not your employer’s 3.5%. Inland Revenue measures your own contributions from 1 July to 30 June. The $180,000 test uses a corresponding tax year. Mixing those clocks is how people miss $260.72, or wait for money that will never come.

How much is the KiwiSaver government contribution now?

From 1 July 2025 Inland Revenue pays 25 cents for each dollar you contribute, with a maximum of $260.72. That is half the old match of 50 cents and $521.43. Business.govt.nz: the year ending 30 June 2025 was still paid in July and August 2025 at the old rate. The current year uses $260.72.

Joining, KS2 rates, and the 3.5% payroll default sit on the KiwiSaver hub. This page stays on the government top up. To see $260.72 inside a year by year balance, use the KiwiSaver calculator.

What money counts toward $1,042.86?

Inland Revenue only counts your own money. Employer contributions, past government contributions, and funds moved from Australian retirement schemes do not count towards the $1,042.86.

That is why a 3.5% employer line on the payslip can look healthy while you are still short of $1,042.86. The employee deduction is the line that feeds this test. A temporary 3% KiwiSaver reduction can leave a gap if the rest of the year does not make up $1,042.86. Inland Revenue still lets you top up by 30 June.

Who can get the $260.72?

Inland Revenue’s getting the KiwiSaver government contribution page opens with anyone who has annual taxable income of $180,000 or less, is contributing, and is aged 16 to 65. There are conditions. The benefits page adds that you must live mainly in New Zealand, or be a government employee serving outside New Zealand, or be working overseas as a volunteer or for token payment for a listed approved charity, with work that meets the Student Loan Scheme Act 2011 tests.

Sources: Inland Revenue getting the KiwiSaver government contribution, KiwiSaver benefits, KiwiSaver changes, getting my KiwiSaver savings when I retire, and taking a savings break.

You do not need a full year of membership to get something. Inland Revenue prorates if you join part way through the year. A provider page that says you must have been a member for at least one year is not the Inland Revenue test. First home withdrawal is the rule that uses 3 years. That is a different door.

How is the $180,000 cap actually tested?

Inland Revenue’s KiwiSaver changes page is short: if you earn more than $180,000 of taxable income a year, you do not qualify. The detail sits in Inland Revenue tax policy commentary on the Taxation (Budget Measures) Act 2025. Eligibility uses taxable income for the corresponding tax year. People with $180,001 or more are out.

The corresponding tax year is either the tax year that ends during the 1 July to 30 June contribution year, if your return is in (or you do not have to file) by 30 June, or else the previous tax year. Inland Revenue’s example years: for 1 July 2025 to 30 June 2026, Case 1 uses 1 April 2025 to 31 March 2026 if the account is finalised in time. Case 2 uses 1 April 2024 to 31 March 2025 if you file after 30 June 2026, including many people with a tax agent extension of time.

Forum threads that guess “always last year’s tax year” or “always this year’s PAYE” miss that split. Follow the corresponding tax year rules, not a payroll blog shortcut.

When does the $260.72 land, and who claims it?

You do not fill in a claim form. Inland Revenue’s benefits page: your KiwiSaver provider makes the claim on your behalf. The getting page: the provider applies after 30 June. Check your account after the end of July. It may take until the end of August. Tracking in myIR also shows the government contribution after the end of July, and it may take until the end of August.

If you believe some or all of it should be there and it is not, contact your provider first. Inland Revenue tax policy: the Commissioner pays the provider within 30 working days of being satisfied you meet the income eligibility test. An outstanding return can delay that.

Pull highlight: Inland Revenue will still contribute 25 cents for each dollar of your own money, up to $260.72, if you meet the other tests. You do not have to do anything to claim it.

Do 16 and 17 year olds get the government contribution?

Yes, from 1 July 2025, if they meet the other eligibility requirements. Inland Revenue’s KiwiSaver changes page and Business.govt.nz both say that. Before 1 July 2025 the age test was 18. Inland Revenue’s getting page still notes 18 before 1 July 2025 when it talks about turning 16 part way through a year. Employer 3.5% for 16 and 17 year olds is a separate 1 April 2026 payroll change, covered on KiwiSaver 3.5% change from 1 April 2026.

What happens at 65?

Once you turn 65 you are no longer eligible for the government contribution. That is Inland Revenue’s getting my KiwiSaver savings when I retire page, last updated 16 January 2026. You can still contribute. Your employer may stop. To stop wage deductions, give the employer a KS51 notice. If you turn 65 part way through the 1 July to 30 June year, Inland Revenue prorates on the days you were still eligible.

What if I am self employed, or on a savings suspension?

The same $260.72 rules apply. There is no employer match on schedular or self employed income, so the $1,042.86 has to come from you. Inland Revenue lists payments to Inland Revenue and payments to your scheme provider as valid paths, alongside salary deductions. On a savings suspension, Inland Revenue: if you want the government contribution you may need to make voluntary payments. The suspension does not, by itself, invent a credit with no money in.

What people get stuck on

r/PersonalFinanceNZ threads mix the 1 July to 30 June contribution year with the 1 April to 31 March tax year, then argue about the $180,000 cap. Inland Revenue tax policy is the official split: contributions on the KiwiSaver year, income on the corresponding tax year. $180,001 or more of taxable income is out.

A second mix up is employer money. Geekzone and provider emails still leave people thinking the 3.5% employer line helps unlock $260.72. Inland Revenue: it does not count.

A third mix up is provider cut offs before 30 June. Inland Revenue says a voluntary extra is fine if it is made by 30 June, including a payment to Inland Revenue. A provider may need an earlier date so their own system can process the deposit. That is their processing window, not a different Inland Revenue dollar test.

Stale pages still quote $521.43, age 18, or a five year rule after 65. Follow Inland Revenue today: $260.72 from 1 July 2025, age 16 to 65, and no government contribution once you turn 65.

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