Big changes are coming to KiwiSaver, and if you’re an employer on the Hibiscus Coast, it’s time to take note.

From 1 July 2025, 16- and 17-year-olds will become eligible for government contributions for the first time.

But at the same time, the maximum government contribution will be halved from $521.43 down to $260.72 per year.

Those earning over $180,000 will no longer qualify for the top-up at all.

In 2026, both employers and employees will see default contribution rates rise to 3.5%, with a further bump to 4% in 2028.

If employees choose to stick with 3%, they’ll be able to apply for a temporary rate reduction and as an employer, you can match that if you wish.

There’s more: from 1 April 2026, if your 16- or 17-year-old staff members contribute from their wages, you’ll also need to start contributing.

For Coast-based businesses, these changes could mean rethinking payroll systems and budgeting ahead especially those with younger team members or high earners.

Inland Revenue will be in touch if and when your contribution requirements change.

The government says these updates aim to make retirement savings more accessible while ensuring long-term sustainability of the KiwiSaver scheme.

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