Along with lifting domestic investment with Investment Boost, Budget 2025 seeks to attract capital and skilled labour, and increase the KiwiSaver balances of New Zealanders.

The Growth Budget seeks to attract capital and skilled labour and increase New Zealanders' savings in KiwiSaver.

• $10m is earmarked to help New Zealand start-ups and unlisted companies recruit talent, deferring the tax liability arising on employee share scheme (ESS) benefits until a liquidity event occurs to fund the tax on income. The boundaries for eligibility are still unclear.
• For migrants and returning New Zealanders, possible ‘revenue account’ and ‘deferral’ methods of calculating foreign investment fund (FIF) income are proposed to ease cashflow.
• $85m is allocated to establish Invest New Zealand to attract talent and capital to New Zealand, lifting growth across technology, science, innovation, and other high-value sectors.
• $65m is set aside to ease thin capitalisation rules for foreign direct investment (FDI) into qualifying private infrastructure projects.

There’s also been changes to KiwiSaver

The Government has announced several key changes to KiwiSaver - affecting contribution rates, government incentives, and eligibility. Here's a summary of what’s changing and when:

Contribution Rate Changes

From 1 April 2026:

• The default employee and employer contribution rate increases from 3% to 3.5%.



From 1 April 2028:

• A further increase to 4% for both employees and employers.

Option to Reduce Contribution Rates

From 1 February 2026, KiwiSaver members will be able to:

• Apply for a temporary rate reduction back to 3%.
• This reduced rate will also apply to the employer’s contribution.
• Members will need to reapply periodically if they wish to continue the reduced rate.

Government Contribution Changes

From 1 July 2025:

• The maximum annual government contribution will be halved — from $521.43 to $260.72.
• Those earning above $180,000 per year will no longer be eligible for any government contribution.

Younger Members Get a Boost

• From 1 July 2025, 16- and 17-year-olds will be eligible for the government contribution.
• From 1 April 2026, they’ll also qualify for employer contributions - currently not available to them.

What This Means for Employers & Employees

These changes will affect payroll processes, budgeting, and how individuals plan their retirement savings. Employers should prepare for higher default contribution costs and updated obligations for younger employees. Members may want to review their KiwiSaver settings in advance of these changes.

Talk to us about how these changes could affect your business.