Do you know any self-employed people? Include Real Estate Agents, Tradies, students, even stay at Home Mum’s and Dad’s?
As a Financial Adviser, I once did a presentation to 10 Real Estate Agents. Only 2 of those were in KiwiSaver, the remaining 8 had not considered it. They assumed that, as they were not being paid a wage, KiwiSaver was not for them.
“Did you know the Government contributes up to $521 EVERY year into your KiwiSaver”? I mentioned. All you have to do is contribute double this or $1,042 every year into your account. This is the equivalent of a ‘no-brainer’ in our financial industry that surprisingly quite a few have overlooked.
To sum this up, for those self-employed, who are over 18 and under 65, contribute $1,043 into your KiwiSaver and the Government will credit your account with half of this or $521 every year. This is called a Member Tax Credit (MTC).
If you are a stay at home Dad such as Mr. Clarke Gayford, and not working, you would be remiss not to put this sum into your KiwiSaver account to qualify for the Government credit. If you are in a trade, a real estate agent, a student over 18, a hairdresser or lucky enough to be retired before age 65, the same applies.
There is money from the Government to be earned here that translates into a 50% return on your investment. Imagine, every Monday, walking out your drive and seeing $10 lying unclaimed on your driveway, then ignoring it, stepping over and walking by. Well, this is precisely the case if you are not claiming this handout.
So, please ask around, talk to your friends and family. Find those individuals not on a wage and ask them “Are you getting the $521 from the Government every year”. You will be surprised by the answer. Perhaps not too surprised as a recent poll by Inland Revenue found over 50% didn’t know about this member tax credit.
Have a chat with your local SHARE adviser, they will happily help you maximise your entitlement. Most set up a KiwiSaver account and put in $87 per month, as that covers off the required contribution. If you can only afford half of this, then you will only get half of the credit. The Government credit is a maximum of $521. so even if you contribute more than double this, the Government contribution tops out at $521.
Even those on a wage should check with their financial adviser that they are grabbing the full credit as there are literally over one Million Kiwi’s who are not getting the full $521 credit from the Government!
Don’t miss out! Make sure you are grabbing this free KiwiSaver windfall every year.
Written by James Sheridan – Authorised Financial Adviser with SHARE
A disclosure statement for James is available on request and free of charge.