KiwiSaver Tips 
Get the tax credit.
Whether you are an employee, self-employed or unemployed, make sure your yearly contributions come to at least $1,040. That way you get the full ‘tax credit’. Double your investment money and get a 100% ROI.Don’t put in more than you have to
This assumes of course that you are a better saver and investor yourself, outside of KiwiSaver. If you aren’t, then ignore this piece of advice. The challenge with KiwiSaver (or the good thing depending on your point of view) can sometimes be that your money is locked up until you are 65.Sometimes life presents you with good investment opportunities. If you’ve piled all your spare dosh into KiwiSaver, then it's too bad. You can’t liquidate this and then use this capital for that opportunity.
The best way is to request a contributions holiday from the IRD and then make voluntary minimum contributions ($1,040) to get your tax credit.
Note: you can only request a contributions holiday after you’ve participated in the scheme for a year.
A word on the mortgage diversion
After one year (providing the scheme provider supports this - not all do) you are entitled to divert half your contributions towards paying off your mortgage. The key thing to remember here is that these diverted contributions do not qualify for the ‘tax credits’.My view is that there is little point to this, you might as well just take the contributions holiday, pay your minimum $1,040 and pour the rest of your spare cash into your paying your mortgage off directly.
Buying your 1st home
For those people saving to buy their 1st home, KiwiSaver as it currently stands, can be an excellent part of your strategy.There are two goodies here – but to take advantage of them you need to have been contributing to KiwiSaver for a few years.
Firstly, after three years you can withdraw the component of KiwiSaver that was contributed by you and your employer.
Secondly, you are entitled to a 1st home subsidy from the Housing Corporation. This amounts to $1,000 per year that you have participated in KiwiSaver, up to 5 years. So theoretically for a couple you could get an additional $10,000 for your deposit. This doesn’t apply to everyone though, there is a cap on the cost of the house and on your total household income, in order to qualify.
