THE end of June, and the start of a new financial year, is an important date for KiwiSaver members.
The present financial year for KiwiSaver runs from July 1, 2009, to June 30, 2010, and if you have contributed at least $1040 to KiwiSaver during that time, you will be eligible
for the full amount of Government tax credit to be paid into your account in July.
The maximum value of the tax credit is the lesser of $1040 or the total of contributions for the year.
If you have put in $900 through deductions from your pay, then your tax credit will only be $900. By putting an extra $140 in before the end of June you will get the full tax credit of $1040.
If you are contributing 2 per cent of your pay into KiwiSaver and you earn less than $52,000 a year, or if you are contributing 4 per cent of your pay and you are earning less than $26,000 a year, you will need to top up your account to get the full tax credit.
If you are self-employed or not working and under the age of 65, you can still become a KiwiSaver member by joining directly with the provider of your choice.
It is not too late to join. Put in $1040 in June and you will be paid your tax credit of $1040 in July.
New members also receive the Government kickstart of $1000.
Liz Koh is a financial adviser. Her disclosure statement can be obtained free by calling: 0800 273 847. Author of Your Money Personality; Unlock the Secret to a Rich and Happy Life. She can be contacted on liz.koh@moneymax.co.nz or view: www.moneymax.co.nz.
