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Changes to KiwiSaver contributions.
2025 Government Budget announcement.
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, the changes are being phased in from 1 July 2025.
What's changing
Contribution rate increase
If you’re employed, the minimum employee and employer contribution rate increased from 3% to 3.5% of your salary or wages on 1 April 2026. It will increase to 4% from 1 April 2028.
Your options
You don’t need to do anything; the change will happen automatically.
If you can, it really pays to step up to a higher contribution rate of 4%, 6%, 8% or 10% early on. Use our KiwiSaver Calculator to see how your balance grows when you change your contribution rate. To increase your contribution rate, login to Westpac One digital banking.
If things have changed for you recently, KiwiSaver members can apply to Inland Revenue for a temporary reduction in their contribution rate to 3% (which would mean your employer may contribute 3% too). You can stay on the reduced rate for 12 months. To remain on this rate, you’ll need to apply for another temporary rate reduction.
Government contribution changes
From 1 July 2025:
- The Government contribution reduced 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 need to contribute $1042.86 between 1 July – 30 June
- Those earning over $180,000 per year are not eligible for the Government contribution.
Support for younger New Zealanders
Those aged 16 and 17-year-olds started receiving the:
- Government contribution from 1 July 2025
- Employer contribution from 1 April 2026.
Self-employed?
Under these changes, you’ll still be eligible for the maximum government contribution of $260.72 each year. Make sure you don’t miss out by setting up an automatic payment of $24 a week. Or make one lump-sum payment of $1042.86.
Calculators.
KiwiSaver Calculator
Your regular contribution rate can have a major impact on how your KiwiSaver balance grows. See how much you could have by changing your contribution rate or fund choice.
KiwiSaver Fund Chooser
The right fund for your life stage can add up to tens of thousands of dollars over time. See which fund is best for you with the Westpac KiwiSaver Scheme Fund Chooser.
Things you should know.
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.