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Where do I getmyfree $500?

Business editor

I’ve heard people talking about needing to put $1000 into KiwiSaver nowto get money from the Government. What’s the deal with this? And do I have to put the whole amount in?

What you might have heardmentioned is the KiwiSaver member tax credit.

If you contribute at $1043 of your own money to your KiwiSaver account in the 12 months between July 1 and June 30, you can receive the maximum contribution of $521.43 from the Government.

This is a return of 50% so is worth having. You canmake your contribution either as a deduction from your salary that is transferred across automatically when you are paid, or by voluntary contributions.

You don’t have to contribute the full $1043 to qualify for a credit – you will get 50c for each $1 you contribute up to that amount. If it’s too hard to get to the $1043 this year – maybe you’re off work for a while – you could think about setting up an automatic payment of $20 a week to your KiwiSaver account to make sure you get it next time.

Now is a good time to check your KiwiSaver settings generally – are you contributing enough to meet your goals? Are you in the right sort of fund for your circumstances?

Whatever happened to those websites that offered tax refunds? Howdo I check Inland Revenue doesn’t owe me money?

Things have changed a bit in this regard in recent years. It used to be that, unless you filed a tax return, you wouldn’t know that Inland Revenue owed you any money. And since it wasn’t compulsory for people on PAYE, a lot of people didn’t bother.

That led to a group of companies offering to check whether people were owed money – and only filing a return for them if they were. They took a percentage fee in return.

But the process has been automated since 2019. People are sent an automatically calculated income tax assessment each year that shows whether you are due a refund or have tax to pay.

You have a chance to correct any incorrect information, and if Inland Revenue has your bank details, any refund will be transferred automatically.

Susan Edmunds is Stuff’s business editor. Each week, she answers your money and personal finance questions. Send yours to susan.edmunds@stuff.co.nz. This information is not intended as personal financial advice and should not replace advice from a professional.

Business

en-nz

2022-05-28T07:00:00.0000000Z

2022-05-28T07:00:00.0000000Z

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