24/02/2026
We are approaching the end of the financial year for most tax payers, this means now is a great time to tidy up loose ends to ensure a good start to the new financial year.
There are a few changes coming in on 1 April 2026 these include:
💵 Minimum wage increases:
• The adult minimum wage will increase from $23.50 to $23.95 per hour
• The minimum wage for starting-out and training has gone up from $18.80 to $19.16 per hour.
• All above rates are before tax and any lawful deductions for example PAYE tax, student loan repayment, kiwisaver, and child support.
💰 KiwiSaver changes
• Default contribution rate rises to 3.5% for both employees and employers. Employees can apply for a temporary rate reduction to remain at 3%, and if approved, the employer contribution will also remain at 3% for that period
• Government KiwiSaver contribution halved — now 25 c per $1 up to a cap of $260.72/year.
• Access to the government contribution income-tested, available only if you earn $180,000 or less.
• 16- & 17-year-olds become eligible for KiwiSaver employer and government contributions.
🧾 20% tax “investment boost”
• for qualifying new assets purchased after 22 May 2025 — this helps reduce taxable profits if you buy new business equipment or buildings.
The Switch team are here for you if you have any questions, or need help, and wish you all the best for the new financial year.