Preliminary provisions

KiwiSaver Act 2006 Part 1 - Preliminary provisions discusses the purpose of the Act and who it applies to.


Section 3 sets out the purpose of the Act, which is to encourage a long-term savings habit and asset accumulation by individuals who are not in a position to enjoy standards of living in retirement similar to those in pre-retirement. The Act aims to increase individuals' wellbeing and financial independence, particularly in retirement, and to provide retirement benefits.

Who the Act applies to

Section 6 sets out who is eligible to be a KiwiSaver member. The Act only applies to natural persons - and only New Zealand citizens and those eligible to be in New Zealand indefinitely in terms of the Immigration Act 1987 can join KiwiSaver. The effect is that New Zealand citizens, Australian citizens, and people who hold either a New Zealand or Australian-residence permit can be KiwiSaver members. People who hold temporary, visitor or student permits cannot.

The Act only applies to people who are, or normally are, personally present in New Zealand at the time they become subject to automatic enrolment or opt in. Government employees can, however, become KiwiSaver members at any stage, including government employees living overseas. However, they must still meet the test above.

The Act applies to employers who are New Zealandresident or who carry on business from a fixed establishment in New Zealand. An employer is a person who pays, or who is liable to pay, salary or wages. In the case of state schools or integrated schools, the relevant Board of Trustees is considered to be the employer.

Other sections in this legislation

IntroductionPart 1Part 2Part 3Part 4Part 5Schedule 1Schedule 2Schedule 3Examples