Kiwisaver Changes 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

We cover all you need to know about KiwiSaver in our training courses.