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Budget 2025 KiwiSaver changes and impacts to mysuper

On 1 April 2026 further Budget 2025 changes related to KiwiSaver, that also impact mysuper locked contributions that comply with the KiwiSaver Act 2006 went live.

As a scheme that voluntarily complies with the KiwiSaver Act 2006, to access the key benefits it offers like first homebuyer withdrawals and government contributions, these changes must be applied to the mysuper account plans that offer locked contributions.

Budget at a Glance - Kiwisaver changes

Minimum contribution rate change

From 1 April 2026:

  • The minimum contribution rate for KiwiSaver, and mysuper locked contributions increased to 3.5%. A further increase in the minimum contribution to 4% will also take effect on 1 April 2028.
  • Changes to contributions rates were automatically applied.
  • If you wish to maintain a minimum contribution of 3% to your mysuper locked account you can request a temporary rate reduction of up to 12 months via a Locked 3.5% Opt-out request.

Important: These changes do not impact the mysuper Unlocked plan which does not comply with the KiwiSaver Act 2006.

Make Account Changes form

The Part Locked account plan change

For members with the Part Locked account plan the minimum contribution rate change has increased the proportion of your future contributions that are locked.

Originally the first 3% of total contributions (from both you and your employer) were locked, with any amount above that remaining unlocked. With the changes to the minimum default contribution rate, a larger portion of your contributions is now locked, and the portion unlocked has reduced accordingly.

See the example below to see how this will work in practice.

Example member contributionsBefore 1 April 2026 - 3% Locking rule1 April 2006 - 3.5%
Locking rule change		1 April 2028 - 4% Locking rule change
4% employee contribution3% is locked
1% is unlocked		3.5% is locked
0.5% is unlocked		4% is locked
0% is unlocked
9% ACC contribution3% is locked
6% is unlocked		3.5% is locked
5.5% is unlocked		4% is locked
5% is unlocked

Annual government contribution change

On 1 July 2025:

  • The annual government contribution of 50 cents was halved to 25 cents for each dollar a member contributes each financial year to their mysuper locked account. This change saw the maximum annual government contribution a member can receive drop from $521.43 to $260.72.
  • The annual government contribution was also extended to 16 and 17-year-olds from 1 July 2025 who make contributions to their mysuper locked account.
  • In addition to these changes, the annual government contribution is no longer available to members with an income of more than $180,000.
FAQs

The KiwiSaver Act 2006 is legislation that underpins KiwiSaver Schemes, setting rules around how withdrawals, government contributions, first homebuyer withdrawals work, amongst other things. Independent workplace savings schemes like mysuper can choose to voluntarily comply with the legislation to offer key benefits provided by the KiwiSaver Act 2006. Two of the mysuper accounts plans, Part Locked and Locked, comply with the KiwiSaver Act 2006.

KiwiSaver Act 2006

As an independent workplace savings schemes, that chooses to voluntarily comply with the KiwiSaver Act 2006 (to access the key benefits provided), mysuper must apply any changes made to the legislation.

KiwiSaver Act 2006

No. The mysuper Unlocked plan follows the mysuper Trust Deed and does not comply with the KiwiSaver Act 2006, therefore it is exempt from any changes that may occur to KiwiSaver.

Unlocked plan

Sadly no. Once you start making a locked contribution under the KiwiSaver Act 2006 you must continue to do so. Therefore, a change to the Unlocked plan is not permitted.

Unlocked plan

If you wish to maintain a minimum contribution of 3% to your mysuper locked account you can ask for a temporary rate reduction of up to 12 months via a Locked 3.5% Opt-out request

Make Account Changes form