Labour won't yet promise to bring back the full KiwiSaver bonus

Labour leader Chris Hipkins says Labour cannot promise yet to bring back the full government KiwiSaver bonus.

In Budget 2025 the bonus was cut from $521 a year to $260. Only people earning under $180,000 can get it now, according to RNZ. Labour's KiwiSaver plan, released on Sunday, does not promise to restore it.

Speaking on RNZ Morning Report, Hipkins said any incoming government after the election will face a lot of pressure. He said he would not make that commitment now.

Think of KiwiSaver as having two parts: money from you and your boss, and a small yearly top-up from the government. Labour's plan focuses on the first part.

Bosses would pay in 6 percent over time. Workers could pay 4 percent, and could pause their own payments if they wish, without having to match the 6 percent.

Labour would also ban new total pay deals. That is where the boss counts KiwiSaver as part of your salary, instead of paying it extra on top.

The default rate would rise in steps, from 3 percent to 3.5 percent from April 2026, then to 4 percent by 2028. From 1 July 2028, boss payments would be compulsory and would cover paid parental leave and workers over 65, according to Labour. Bosses would keep paying even when workers cut back or paused their own payments, as reported by the NZ Herald.

Hipkins said: "KiwiSaver is one of Labour's proudest legacies. We created it, and now we're going to make it work better for people."

On tax, Hipkins said Labour will set out its view on landlord interest deductibility, the rules for landlords claiming mortgage interest as a cost, after the Pre-election Economic and Fiscal Update, Treasury's pre-election check on the books, later this month. He would not commit before then.

The broader context here is about timing and money. Labour is willing to ask bosses to pay more over time, but it will not take on the direct cost of restoring the $521 payment before it has seen Treasury's figures. That keeps its spending plans tight before PREFU and leaves the top-up for later. The things to watch are pay talks, the rules for over-65s and parental leave, and whether the Treasury update changes the landlord tax call.