Income Tax Act 2007

Tax credits paid in cash - Tax credits for KiwiSaver schemes and complying superannuation funds

MK 4: Amount of tax credit

You could also call this:

"How much tax credit you get for putting money into KiwiSaver or a superannuation fund"

You get a tax credit when you put money into a superannuation fund or KiwiSaver scheme. The amount of tax credit you get is half of what you paid into your fund or scheme for the year, up to $521.43. If you only paid into your fund or scheme for part of the year, your tax credit might be less. You can calculate your tax credit using a formula if you paid into your fund or scheme for only part of the year. The formula is $521.43 times the number of days you paid into your fund or scheme, divided by 365. The number of days you paid into your fund or scheme is added up if you paid in for more than one period during the year. The tax credit is paid to your fund provider under section MK 3(2) for a year described in section MK 1(3). If you meet the requirements of section MK 2 for only part of the year, your tax credit is calculated differently. You can find more information about this in section MK 2.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518607.

This page was last updated on 29 January 2026 — View changes

Topics:

Money and consumer rights > Savings and retirementMoney and consumer rights > Taxes

MK 3: Payment of tax credits, or

"How the government pays tax credits to your KiwiSaver scheme"

MK 5: Crown contributions for members, or

"Government tax credits for KiwiSaver and complying fund members"

Part MTax credits paid in cash
Tax credits for KiwiSaver schemes and complying superannuation funds

MK 4Amount of tax credit

This section sets out how to calculate the amount of a tax credit paid to a fund provider under section MK 3(2) for a year described in section MK 1(3).
The amount of the tax credit is an amount equal to half of a person's total member credit contributions for the year for all of their complying superannuation funds and KiwiSaver schemes up to a maximum amount of $521.43.
Despite subsection (2), if the person meets the requirements of section MK 2 for only part of the year, the amount of the tax credit is,—
equal to half of their total member credit contributions for the year, if that amount is equal to or less than the part-year maximum amount calculated under subsection (4); or
equal to the part-year maximum amount calculated under subsection (4), if half of their total member credit contributions for the year is greater than the part-year maximum amount calculated under subsection (4).

The part-year maximum amount referred to in subsection (3) is calculated using the formula—
$$521.43 × days ÷ 365.$

Where:
In the formula, days is the number of days in the year in which the person meets the requirements of section MK 2.
In subsection (3), a part of the year may include 1 or more periods of the year in which the person meets the relevant requirements and, if there are several periods, for the purposes of the item days in the formula, the days in those periods are added together.

Compare

2004 No 35 ss KJ 3, OB 1 member credit year

Notes

Section MK 4: substituted, on 1 April 2008, by section 129 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section MK 4(2): amended, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(1)(a) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section MK 4(2): amended, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(1)(b) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section MK 4(3)(a): substituted, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(2) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section MK 4(3)(b): substituted, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(2) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).
Section MK 4(4) formula: amended, on 1 July 2011 (applying for calculating a tax credit for the year starting on 1 July 2011 and later years), by section 7(3) of the Taxation (Annual Rates and Budget Measures) Act 2011 (2011 No 23).