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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 can get based on your contributions"

Illustration for Income Tax Act 2007

The amount of tax credit you get is calculated based on your total member credit contributions for the tax credit year. You can get a tax credit of up to $260.72, which is a quarter of your total member credit contributions for the tax credit year. If you meet the requirements of section MK 2 for only part of the tax credit year, your tax credit will be calculated differently.

If you meet the requirements for only part of the year, your tax credit will be a quarter of your total member credit contributions for that part of the year. However, if that amount is more than the part-year maximum, you will get the part-year maximum amount instead. The part-year maximum amount is calculated using a formula: $260.72 multiplied by the number of days you met the requirements, divided by 365.

In this formula, days refers to the number of days in the tax credit year when you met the requirements of section MK 2. If you met the requirements for more than one period during the year, the days in each period are added together to calculate the total days. This rule applies when calculating your tax credit for the year, and it helps to ensure you get the right amount of tax credit.

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This page was last updated on

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

Topics:
Money and consumer rights > TaxesMoney and consumer rights > Savings and retirement
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MK 3: Payment of tax credits, or

"Getting money back from the government for your KiwiSaver or superannuation fund"

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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

  1. 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 tax credit year.

  2. The amount of the tax credit is an amount equal to quarter of a person's total member credit contributions for the tax credit year for all of their complying superannuation funds and KiwiSaver schemes up to a maximum amount of $260.72.

  3. Despite subsection (2), if the person meets the requirements of section MK 2 for only part of the tax credit year, the amount of the tax credit is,—

  4. equal to quarter of their total member credit contributions for the tax credit year, if that amount is equal to or less than the part-year maximum amount calculated under subsection (4); or
    1. equal to the part-year maximum amount calculated under subsection (4), if quarter of their total member credit contributions for the tax credit year is greater than the part-year maximum amount calculated under subsection (4).

      1. The part-year maximum amount referred to in subsection (3) is calculated using the formula—

        $260.72 × days ÷ 365.

        Where:

        • In the formula, days is the number of days in the tax credit year in which the person meets the requirements of section MK 2.

        • In subsection (3), a part of the tax credit year may include 1 or more periods of the tax credit 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 , by section 129 of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
        • Section MK 4(1): amended, on , by section 13(1) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(2): amended, on , by section 13(2)(a) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(2): amended, on , by section 13(2)(b) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(2): amended, on , by section 13(5) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(2): amended, on (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(3)(a): substituted, on (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)(a): amended, on , by section 13(3) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(3)(a): amended, on , by section 13(5) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(3)(b): substituted, on (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): amended, on , by section 13(3) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(3)(b): amended, on , by section 13(5) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(4) formula: amended, on , by section 13(4) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(5): amended, on , by section 13(5) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4(6): amended, on , by section 13(5) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4 list of defined terms employee: repealed, on , by section 13(6)(b) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4 list of defined terms employer contribution: repealed, on , by section 13(6)(b) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4 list of defined terms first payment period: repealed, on , by section 13(6)(b) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4 list of defined terms pay: inserted, on , by section 13(6)(a) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4 list of defined terms salary or wages: repealed, on , by section 13(6)(b) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4 list of defined terms second payment period: repealed, on , by section 13(6)(b) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).
        • Section MK 4 list of defined terms tax credit year: inserted, on , by section 13(6)(a) (and see section 13(7) for application) of the Taxation (Budget Measures) Act 2025 (2025 No 26).