Make a payment
KiwiSaver Poua he Oranga

Legislation and policy

The KiwiSaver savings initiative is governed by a number of acts and regulations.

KiwiSaver Act 2006

The principal act is the KiwiSaver Act 2006. Other legislation affecting the KiwiSaver initiative includes:

Superannuation Schemes Act 1989 (repealed)

For most purposes, KiwiSaver schemes are considered registered superannuation schemes under the Superannuation Schemes Act. Various provisions of the Superannuation Schemes Act apply to the KiwiSaver initiative.

Securities Act 1978 (repealed)

The Securities Act applies to offers of securities to the public in relation to superannuation schemes. The KiwiSaver Act makes some changes to the way the Securities Act applies to KiwiSaver, to reflect how KiwiSaver works and is administered.

Financial Transactions Reporting Act 1996

KiwiSaver schemes, apart from "default" KiwiSaver schemes, will be subject to the normal Financial Transactions Reporting Act obligations.

Default KiwiSaver schemes will not be subject to all the Act's normal obligations, particularly in the area of identifying new members. Under the KiwiSaver Act a scheme provider must still make reasonable efforts to verify identity at the time of the default allocation.

Income Tax Act 2007

The Income Tax Act provides the rules on taxing income from investment through New Zealand portfolio investment entities (PIE) and offshore portfolio investment in shares.

This act, together with the Tax Administration Act 1994, lays out the rules for "pay as you earn" (PAYE) tax. This applies specifically in determining what is "salary or wages" in reference to calculating contributions.

Tax Administration Act 1994

This act, together with the Income Tax Act 2007, lays out the rules for PAYE. This applies specifically in determining the way Inland Revenue collects contributions and details from employers and passes them on to scheme providers.

Investment Advisors (Disclosures) Act 1996 (repealed)

This act requires the disclosure of certain information by people who give investment advice to the public or who receive money or properties from the public as intermediaries.

Taxation (KiwiSaver and Company Tax Rate Amendments) Act 2007

This gave effect to the:

  • member tax credit, and
  • requirement that all employer KiwiSaver contributions must be paid to Inland Revenue from 1 July 2007.

Taxation (KiwiSaver) Act 2007

This gave effect to:

  • the compulsory employer contribution and employer tax credit, and
  • certain other remedial amendments.

Financial Markets Authority Act 2011

The Financial Markets Authority Act 2011 establishes the Financial Markets Authority (FMA) and from 1 May 2011 the FMA will be responsible for the regulation of the financial sector and will, amongst other things, supervise the management of KiwiSaver schemes and monitor the practices of financial advisers.

KiwiSaver Budget Measures Act 2015

This gave effect to:

  • the Government $1,000 kick-start contribution no longer being available for members joining on or after 2pm, 21 May 2015.

Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019

This gave effect to:

  • additional employee deduction rates of 6% and 10%
  • changing the name of the contributions holiday to savings suspension
  • reducing the maximum contributions holiday a member can request to one year
  • allowing those 65 and over to join KiwiSaver
  • removal of the five year lock-in period for those joining KiwiSaver on or after 1 July 2019
  • From 1 April 2020 the 5-year lock in period for members who were aged between 60-64 and enrolled prior to 1 July 2019, becomes optional.

The name of the member tax credit was changed to Government contribution to align with these changes.