• the employee does not make contributions (e.g. they are on a savings suspension);

• the employee is under 16 years old; the employee is eligible to withdraw their KS savings because they are 65 years or older;

• the employer is already contributing to another qualifying Complying Superannuation Scheme for the employee; or 

• the employee is not entitled to join a KS scheme.

Self-employed people can register and contribute to a KS account as can non-workers, but this is not compulsory.

The Government matches member contributions at a rate of 25 cents for every dollar, up to a maximum annual government contribution of $260.72.You can only belong to one KS scheme at a time.

The employee can choose which KS provider to use, or they will be put into a default scheme.
If contributing to a Complying Superannuation Scheme, this will replace the requirement to join a KS scheme.

A member can make a withdrawal of all of their KS balance (excluding $1,000) towards purchasing their first home (or farm).  Otherwise, a member cannot withdraw their fund (except for extreme hardship, serious or terminal illness, or the member has life- shortening congenital conditions) until they have reached 65 years of age.*  Any withdrawal is then voluntary and could be a lump sum, regular withdrawals or the money left invested in the fund.  Withdrawals are not taxable.

On death, a member’s remaining funds in their KS is paid to the member’s estate.

If the member has left NZ permanently, they can apply for the fund to be refunded (after living overseas for at least one year).  A KS fund can also be transferred to an Australian retirement fund.  

* The KS withdrawal rate is tied to the age of entitlement to NZ Super, which is currently 65 years.

• Lift KiwiSaver contribution rates to 6 per cent each for employers and employees (and to work on removing total remuneration packages where the employee effectively pays the employer contribution)

• Enrol newborns into KS with a Government contribution of $1,500 (a Baby Boost payment)

• Provide a Govt contribution to KS accounts for those on parental leave

• Require employers to continue to contribute even if the employee has reached 65 years (where the employee remains a contributing member)

• Restrict the ability to suspend contributions only if they meet the same hardship test used for early withdrawal.

• Allow members who have accumulated a specified minimum KS balance to access their KS savings to pay down their mortgage on the family home

• Enrol newborns into KS with a Government contribution of $1,000 (the Kickstart payment)

• Encourage all under 18 year olds to open a KS account by offering an annual Government contribution of $250, if $250 has been saved in the preceding year

• Compulsory enrolment by 18 years of age, and starting employment

• Change KiwiSaver default investment rules to allow investment in any lawful sector in NZ

• Review fees and increase the Government contribution in line with inflation to a current maximum of $1,540.