Self Employed or Sole Trader

What if you are self employed or a sole trader?

Self employed individuals who have not attained age 65 can choose their own KiwiSaver provider.  Check out the full list of KiwiSaver scheme providers.  You can order investment statements from the providers by contacting them by phone, email or web link.  Once you have completed the enrolment form for your chosen scheme, including your chosen investment fund, and returned it, your chosen provider will notify Inland Revenue that you have joined KiwiSaver.

Contributions should be paid direct to your chosen KiwiSaver scheme provider.

Self employed are currently entitled to receive:

  • $1,000 initial Crown contribution and,
  • Initially if over 18 years of age, and you contribute a minimum of $1,042.86 per annum (an average of $20 per week) your contribution was matched with a Member Tax Credit (MTC) $1,042.86.  This tax credit is calculated according to contributions paid during years ended 30 June.  In the year of joining the full amount was pro-rated based on the date of joining - if joining on 1 January, 6/12ths of $1,042.86 ($521.43) would be the maximum credit for the year.  In subsequent years the full credit of $1,042.86 could be received, even if the full member contribution of $1,042.86 is paid in June.   However, the MTC is to be paid to 50c for each $1 contributed by members to the new maximum amount of $521.43 per year.   This lower maximum amount and MTC rate will apply for MTCs paid for the year ended 30 June 2012 and later years.

Access to your funds is restricted in the same way as if you are an employee.  Benefits are normally payable at age 65 or after five years' membership if later.  After three years of savings, the self employed are eligible for the first home subsidy.  Savings withdrawn exclude any member tax credits and the $1,000 initial Crown contribution.