KiwiSaver Changes Budget 2025

Legislated KiwiSaver changes included in Budget 2025

The government announced some key changes to the KiwiSaver scheme in its Budget 2025 announcement. Some started on 1 July 2025, with most affecting payroll kicking in 1 April 2026. The key changes are:

For the year starting 1 July 2025, the government contribution will be cut from 50 cents to 25 cents per $1, with the maximum contribution reduced to $260.72 (NZers must be contributing minimum $1042.86 per year to receive this full entitlement)
Eligibility for KiwiSaver contributions will be expanded to include 16+17 year old Kiwis. To enter KiwiSaver, they cannot auto enrol, as they must apply directly due to parental consent being required.
This means they will be eligible:
- for the Government contributions 1 July 2025
- Employer Contributions from 1 April 2026
The default contribution rate will also be increasing
- from the current 3% up to 3.5% starting in April 2026
- then to 4% from April 2028
- There is a temporary opt down option to stay at 3% if you feel unable to afford increase which is available for 12 months
There is a new income cap of $180,000, above which Kiwis will no longer be eligible for the Government contributions

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Categories: : KiwiSaver, Legislation Updates, Payroll