National promises to boost KiwiSaver to match Australian Super

Sunday, 23 November 2025

National has kicked off its election campaign with a party promise to pull Kiwisaver contribution rates up to Australia levels - a combined 12% contribution rate for employers and employees.

It will mean by 2032, employees will have the option to put 6% into their Kiwisaver, which employers will have to match.

The Prime Minister made the announcement in Silverstream in Wellington on Sunday morning, saying New Zealand’s KiwiSaver contributions were “much lower” than Australia.

“In Government, we are already lifting the default rate of KiwiSaver contributions for employers and employees from 3% to 4% by April 1, 2028.

“If we’re serious about building the future, and I am, it’s time to aim higher.”

In regards to Australia’s employer contribution being at 12%, Finance Minister Nicola Willis acknowledged the schemes were different.

“They, on the one hand, do not have universal superannuation, and on the other hand, make private savings compulsory.

“Our position for New Zealand is different. Universal Superannuation is here to stay. And at the same time, we think having KiwiSaver as a voluntary product makes sense.

“By getting contributions up to 12% we can give Kiwis much better options in their retirement. We can have what Australia’s got.“

Luxon said if National was elected next year, they would continue to increase the default contribution rates by 0.5% a year from April 1, 2029, to achieve a 6% contribution rate from employees and employers until April 2032.

Labour leader Chris Hipkins said “the devil is always in the detail, and they haven't worked through the detail here”.

“The Labour Party is supportive of increasing KiwiSaver contributions, but we're concerned that the government haven't done their homework.

“They haven't figured out the implementation details, and people are going to end up really struggling to do what the government are asking of them.”

It follows a 2025 Budget day change which saw the Government change its KiwiSaver contributions.

The Government had been paying $521 each year to those who add at least $1042 to their KiwiSaver. With the change, it would pay a maximum of $260.72 per year. For people earning above $180,000, the Government KiwiSaver contributions would cease.

They also changed the default rate from 3% to 4%. Workers in financial stress could still apply to stay at the 3% rate.

Finance Minister Nicola Willis on Sunday confirmed the Government contribution rate would remain the same in National’s new Kiwisaver election policy.

If businesses were on board about a potential contribution boost, Luxon said, “we're giving them time”.

“We're laying out quite a long term plan here, it'll be a steady increase of half a percent each and every year. We're giving everyone time to adjust.”

Willis said employers reacted positively to the Budget change.

“I was nervous that they would push back. In fact, they've been some of the biggest supporters,“ she said.

“I think employers will get on board with this vision. It's important they have time to plan, which is why we're setting this out today, but actually, all of us are invested in a better economic future for New Zealand and employers are no different.”

Retirement Commissioner Jane Wrightson said she welcomed any policy changes that strengthen New Zealanders’ ability to save for retirement.

She said the gradual increases could be a positive step toward improving long-term financial security but called for government contributions to be maintained and enhanced, where possible.

Wrightson warned it was essential that these increases genuinely add to employees’ savings rather than being offset through total remuneration arrangements.

Citing the recent Review of Retirement Income Policies, Wrightson said the practice undermines the intent of KiwiSaver by reducing take-home pay and eroding the additional benefit of employer contributions.

“We strongly support banning this approach to ensure fairness and transparency,” she said.

Luxon also signalled a “serious shake up” for local body was imminent and tied to Resource Management Act reform.

National's proposed employer and employee KiwiSaver contribution rates:

April 1, 2026: 3.5%

April 1, 2028: 4%

April 1, 2029: 4.5%

April 1, 2030: 5%

April 1, 2031: 5.5%

April 1, 2032: 6%