It’s wise to think of the $541 KiwiSaver Member Tax Credit as money you paid in tax, and are earning back by saving. For many people this happens automatically as their regular contributions to KiwiSaver count towards them getting their MTC, which is automatically paid into KiwiSavers’ accounts. READ MORE:* National forecasts funding start-ups with KiwiSaver draw-downs and tax credits would cost $97m* Is KiwiSaver punishing the poor? The MTC money is probably best thought of as a controlled return of some of the tax you paid during the year. As an incentive to save, I’m not sure it’s done anything to nudge up the national savings rate, and it’s a funny thing for the government to borrow for during a global pandemic.

Source: Stuff April 30, 2021 17:01 UTC