Changes to KiwiSaver contributions.

There were several changes to KiwiSaver in the Government’s 2025 Budget announcement. These changes are aimed at helping New Zealanders reach their KiwiSaver goals. To help everyone plan ahead, these changes will be phased in from 1 July 2025.

What's changing

Contribution rate increase

If you’re employed, the default 3% employee and employer contribution rate will increase to:

• 3.5% from 1 April 2026
• 4% from 1 April 2028.

While there is the option to temporarily remain at the current 3% contribution rate (which would also mean your employer will contribute 3% too) contributing 4% could see a member’s KiwiSaver savings lasting up to 30% longer¹. If you’d like to increase your contribution rate to 4% now, login to Westpac One digital banking or see other ways to change your contribution rate.

Government contribution changes

From 1 July 2025:

• The Government contribution will reduce from 50c to 25c for every $1 you contribute, up to a maximum $260.72. This means to receive the maximum Government contribution of $260.72 each year, you will still need to contribute $1042.86 between 1 July – 30 June
• Those earning over $180,000 per year will no longer be eligible for the Government contribution.

Support for younger New Zealanders

Those aged 16 and 17-year-olds will start receiving:

• The Government contribution from 1 July 2025
• The employer contribution from 1 April 2026.

¹ Lasting on average approximately 30% longer than under the pre-Budget 2025 settings for a median salary and wage earner who contributes without interruption over a 40-year working life. As stated in the Analysis of KiwiSaver changes: Budget 2025.

BT Funds Management (NZ) Limited is the scheme provider and issuer, and Westpac New Zealand Limited is a distributor, of the Westpac KiwiSaver Scheme (Scheme).

The information above is subject to changes to government policy and law, and changes to the Westpac KiwiSaver Scheme from time to time.

Investments made in the Scheme do not represent bank deposits or other liabilities of Westpac Banking Corporation ABN 33 007 457 141, Westpac New Zealand Limited or other members of the Westpac Group of companies. They are subject to investment and other risks, including possible delays in payment of withdrawal amounts in some circumstances, and loss of investment value, including principal invested. None of BT Funds Management (NZ) Limited (as manager), any member of the Westpac Group of companies, The New Zealand Guardian Trust Company Limited (as supervisor), or any director or nominee of any of those entities, or any other person guarantees the Scheme's performance, returns or repayment of capital.

For a copy of the Product Disclosure Statement or more information about the Scheme, contact any Westpac branch or call 0508 972 254 or from overseas +64 9 375 9978 (international toll charges apply). You can also download the Product Disclosure Statement.