Guaranteed 50% return on investment with the Member Tax Credit from the Government!

Thursday 27th June 2013 3 Comments

There is an opportunity for everyone contributing to KiwiSaver to receive “Member Tax Credit” up to a maximum of $521.43.

“What is a Member Tax Credit?”

Do not get confused with “Working for Families Tax Credit”. Member Tax Credit has nothing to do with your tax return. The Government puts 50 cents into your KiwiSaver account for every dollar, up to a maximum of $1,042.86, you've put in during the year. So the maximum Member Tax Credit will be $521.43. If you have put in $800 so far you will receive $400 in Member Tax Credit.

What can you do if you have not contributed $ 1042.86 and still want to receive the Full Member Tax Credit?

All you have to do is make sure you've contributed at least $1,042.86 before the end of June.

You can always make lump sum contribution to your Kiwisaver account. The Member Tax Credit will be paid in to your account sometimes in July or August.

The best part of KiwiSaver is that whatever you put in you receive a 50% return on investment with the Member Tax Credit.

However under any circumstances you are unable to take advantage of the Member tax Credit this time please pay attention to the following for future reference.

If you set up regular contributions to your KiwiSaver account you will not need to make lump sum payments, just $20 a week is $1,040 a year or $87 a month will give you $1,044 a year.

If you have any queries about any investments or want to Buy or Sell Shares Call us on 0800 474 669 or 09 3040145.

Comments from our readers

On 28 June 2013 at 7:52 am Mark said:

50% return on investment? Nonsense. You're forgetting the fact that the $521 comes out of our taxes i.e. we are paying the $521 ourselves.

On 28 June 2013 at 10:38 am Kevin Knight said:

Don't forget also that from 1 April 2012, thanks to the greed of the present government wanting to reduce the total potential income of the lower paid as much as possible,employer contibutions to KiwiSaver became subject to superannuation contribution tax (ESCT). In my case struggling to live on a salary of $40,000pa but looking forward to the 'benefits' of KiwiSaver on retirement, of my Employer's contibution of $839, only $703 was paid to my KiwiSaver provider, the rest going to the government in ESCT Tax.

On 11 July 2013 at 9:24 am yon lee said:

About the $50.000 investment