Check your contributions to KiwiSaver. To get the maximum government contribution of $521.34 paid into your KiwiSaver during July, you will need to have contributed $1,042.648 before 30 June. If you contribute less than this, the government will pay 50c for every $1 that you contribute.
To qualify, you must be 18 years or older. If you joined or turned 18 during the year, the government contribution will be pro-rated for the days that you have been an eligible member.
If you joined KiwiSaver on or after 1 July 2019, you can get the government contribution up until you turn 65. If you joined KiwiSaver before 1 July 2019, you can get the government contribution up until you turn 65 or have been a KiwiSaver member for 5 years, whichever is the later.
Don’t know who your KiwiSaver provider is? Log into your myIR account to find out then give your provider a call. While you’re at it, check point two below.
Are you on the right tax rate for your KiwiSaver? Your KiwiSaver tax rate is called a Prescribed Investor Rate (PIR) and is based on your earnings for the previous two financial years. If you over-pay tax on your KiwiSaver you can’t claim it back, and if you underpay, you may be liable for penalties.
The IRD have recently added a PIR tax calculator in your myIR account which you can use to check what your KiwiSaver tax rate should be. Then, check your annual KiwiSaver statement which you should have received during May, contact your provider or log into your KiwiSaver account online to check and update if needed.
Claim any tax-deductible expenses for the year ending 31 March 2020 against your income in your myIR account. This includes loss of earnings insurance premiums, financial adviser and/or bookkeeper fees.
Your financial adviser or custodial service provider should provide a tax summary to assist you with your tax reporting obligations. If you don’t use an Accountant/bookkeeper, this can be done in your myIR account. Remember, if the investments are owned jointly, the income should be split equally.
If you have any questions or would like to chat to one of our financial advisers, get in touch today.
1 June 2020. Photo credit: Micheile Henderson, Unsplash