In 2011 a number of changes were made to KiwiSaver, by way of a reminder here is a summary of the key changes:
- Member tax credit halved from 1 July 2011 to $521 (members will have to save $1,043 to receive the full member tax credit of $521, if less than $1,043 is contributed then 50c is received for every dollar put in);
- From 1 April 2012 employer contributions to KiwiSaver will be subject to Employer Superannuation Contribution Tax (ESCT), previously there had been an exemption from ESCT for employer contributions (employer contributions will be taxed at an employees marginal tax rate);
- From 1 April 2013 both member and employer minimum contributions will increase from the current 2% to 3% (this does not apply to non employees).
A reminder that no change was made to the $1,000 kick-start received upon joining KiwiSaver or to the first home deposit subsidy.