At UHY Haines Norton Auckland, staying on top of tax and payroll changes is part of how we support our clients, and this year has brought several you need to know about.

September 2026

KiwiSaver rates on the rise

From 1 April 2026, minimum KiwiSaver contribution rates rose from 3% to 3.5% for both employees and employers. It is not the last adjustment either: a further rise to 4% is scheduled for 2028. Employers should factor these increases into payroll budgets now, particularly where remuneration packages are structured around a fixed total cost to the business rather than a base salary plus contributions. Payroll software and employment agreements should be checked to confirm the new rate is being applied correctly.

ACC levy increase

The ACC earners' levy also increased, moving to 1.75% from 1 April 2026. The change is modest on a per-payslip basis, but it applies across every employee and self-employed person paying the levy, so the cumulative effect across a workforce is worth noting when reviewing payroll costs for the year ahead.

Younger workers brought into KiwiSaver

A welcome extension is the requirement for employers to make KiwiSaver contributions for eligible 16 and 17-year-old employees. Previously, compulsory employer contributions began at 18, leaving younger workers without the same retirement savings support as their older colleagues. Bringing this age group into the scheme closes that gap and gives younger employees a head start on long-term savings, though it does add a further line item for employers to track in payroll systems that may not have previously needed to accommodate this age bracket.

Solar income exemption

Finally, an exemption has been introduced for income earned from residential solar power. Households selling excess electricity generated by home solar panels back into the grid may no longer need to declare or pay tax on that income, subject to the specific rules around eligibility. This is a useful concession for homeowners who have invested in solar and were previously uncertain about how any surplus sold back to retailers should be treated for tax purposes.

Together, these changes reflect a period of incremental but meaningful adjustment across both the tax and payroll landscape. Employers should review payroll settings, employment agreements and budgeting assumptions to ensure compliance with the new rates. If you have questions about how any of these changes affect your business or personal circumstances, our team at UHY Haines Norton Auckland is available to help.

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