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KiwiSaver Opting Out

Summary
  • An employee has 8 weeks from the start of employment to opt out of the scheme. Section 16
  • An employee opts out by filling in and giving an opt out form to either the employer or the IRD. Section 17(1)
  • The IRD is required to supply blank opt out notices to all employers as part of the KiwiSaver Information Pack. Section 17(2)(a)
  • Download the KS10 New Employee Opt-Out Form from our website in PDF format.
How To Access
  • An employee can be opted out of KiwiSaver from either the pay calculation screen, or from the F3 Employee Maintenance screen.
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Section 16 KiwiSaver Act 2006
Time limit for opting out

Every employee to whom the automatic enrolment rules apply when starting new employment may opt out at any time in the period beginning on the 13th day after the date on which the person started the new employment and ending on the close of the 55th day after the date on which the person started the new employment.

Section 17 KiwiSaver Act 2006
How to opt out

(1) Every employee who wishes to opt out must, within the time limit in section 16 , give an opt-out notice either

(a) to the Commissioner; or

(b) to the employer in respect of the new employment that triggered the automatic enrolment rules.

(2) An opt-out notice must be

(a) given in the form of the opt-out notice in an information pack; or

(b) given in any other form and manner permitted by the Commissioner.

(3) In order to be effective, an opt-out notice must contain the information required by that form or by the Commissioner, as the case may be.

(4) An opt-out takes effect on the later of

(a) the 13th day after the date on which the person started the new employment that triggered the automatic enrolment rules; and

(b) the date on which the opt-out notice is

(i) accepted by the Commissioner, in the case of a notice given to the Commissioner; or

(ii) received by the employer, in the case of a notice given to the employer.

(5) An employer who receives an opt-out notice must give notice of that opt-out to the Commissioner no later than the time that the next employer monthly schedule is required to be delivered to the Commissioner under section NC 15 of the Income Tax Act 2004.

Section 18 KiwiSaver Act 2006
Extension of opt-out period

(1) This section applies if

(a) an employee gives an opt-out notice outside the time limit in section 16 ; and

(b) 1 or more of the following applies:

(i) the employer did not supply the employee with an information pack within 7 days of the employee starting new employment with the employer; or

(ii) the Commissioner did not send an investment statement under section 50(3)(c); or

(iii) the employer did not supply an investment statement under section 43 (if an employer's choice of KiwiSaver scheme is effective); or

(iv) events outside the control of the employee meant that the opt-out notice could not be given within the time limit and, in the opinion of the Commissioner, it is reasonable that a late opt-out notice be accepted.

(2) The Commissioner may accept the opt-out notice in the period that ends 3 months after the date on which the Commissioner receives the first contribution in respect of the employee.

(3) If an opt-out notice is received by the Commissioner outside the time limit in section 16 , and the Commissioner does not exercise his or her discretion to accept it under this section, the Commissioner must treat the notice as if it were an application for a contributions holiday under section 102, if the person could have applied under that provision.

More KiwiSaver Information

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KiwiSaver Contribution Rates
All members must contribute 3% of gross wages and may contribute 4% or 8% more..
KiwiSaver Opting Out
An employee has 8 weeks from the start of employment to opt out of the scheme more..
KiwiSaver Opting In
Anyone can opt in to the scheme at any time. Once opted in, an employee can never opt out more..
KiwiSaver Contributions Holiday
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ESCT - What Is It?
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ESCT Tax Rates
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ESCT on IRD Monthly Returns
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KiwiSaver Reversals and Refunds
Use the Reversals and Refunds Wizard to reverse and optionally refund KiwiSaver deductions to employees that were automatically enrolled, and then opted out of KiwiSaver more..
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Total Remuneration
Use when an agreed salary package includes KiwiSaver employer contributions more..
KiwiSaver Scheme Providers
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Exempt Schemes
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Alphabetical Index
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Ace Payroll FAQ Contents
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Ace Payroll Frequently Asked Questions
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KiwiSaver Forms

image KS1 Employee Details
An employer uses this form to notify Inland Revenue about
  • a new employee being enrolled automatically.
  • an existing employee opting in.
image KS2 KiwiSaver Deductions
An employee uses this form to provide details to an employer if they are
  • starting new employment.
  • an existing employee opting in.
  • a member contribution rate change.
image KS3 Employee Information
An introductory guide for an employee about the KiwiSaver scheme.
KS4 KiwiSaver Employer Guide
A 36 page overview of your KiwiSaver responsibilities as an employer.
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KS6 Contributions Holiday
An employee uses this form to request a contributions holiday.
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image KS10 New Employee Opt Out
An employee uses this form if they have been automatically enrolled and don't want to be a member of KiwiSaver.