Full Breakdown
Upcoming Changes to KiwiSaver and Other Financial Policies in New Zealand
3/29/2026, 9:54:52 PM
Key Changes Effective April 1
Starting April 1, 2023, several financial policy changes will take effect in New Zealand, impacting KiwiSaver contributions, benefit rates, and various tax regulations. The default contribution rate for KiwiSaver will increase from 3% to 3.5% for both employers and employees, with a survey indicating that 15% of respondents plan to apply for a temporary reduction to maintain the lower rate. Additionally, individuals aged 16-17 will now receive employer contributions if they are contributing to their KiwiSaver accounts.
Adjustments to Benefit Rates and Minimum Wage
Benefit rates will rise in line with inflation, specifically by 3.11%. For instance, the Jobseeker payment for a single person over 25 will increase from $361.32 to $372.55 per week, while sole parent support will rise from $505.80 to $521.52. The New Zealand Superannuation payment for single individuals living alone will also see an increase, from $1,076 to $1,110.30 per fortnight. Furthermore, the minimum wage will rise from $23.50 to $23.95 per hour, with training and starting-out wages increasing to $19.16 per hour.
Changes to Tax Credits and Levies
The in-work tax credit, part of the Working for Families scheme, will increase by $50 per week for qualifying families. The ACC earners’ levy will also see a rise from 1.67% to 1.75% per $100 earned for pay runs after April 1.
New Regulations for Solar Energy and Digital Nomads
A new tax exemption will apply to power generated by rooftop solar systems sold back to the grid, effective April 1. This change means that while customers will not be taxed on this income, they cannot claim tax deductions for the associated costs. Additionally, new tax rules will benefit digital nomads, allowing them to stay in New Zealand for up to nine months without triggering tax residency issues, provided they do not establish a permanent abode.
Criticism of Low-User Tariff Changes
The government will continue phasing out the low-user power scheme, which has faced criticism for not effectively targeting low-income households. The maximum low-fixed charge will increase to $1.80 per day, with the scheme set to be fully removed by next April. Critics argue that the scheme disproportionately benefits higher-income earners while larger low-income families face higher costs.
Official Statements & Responses
The New Zealand government has emphasized that these changes aim to support families and individuals amid rising living costs. The adjustments to benefit rates and tax credits are part of broader efforts to alleviate financial pressures on households.
Conflicting Reports & Gaps
While the government has outlined these changes, there are concerns regarding the effectiveness of the low-user power scheme and its impact on different income groups. Further details on the implementation of the new tax reporting framework for crypto assets are also pending clarification.
Verbatim Quotes
“Shared information could be for things like determining eligibility for government assistance, the investigation of crime or removing the financial benefit of crime, she said.” — Robyn Walker, Deloitte Tax Partner
