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Setting you up for your first part-time job

On the verge of adulthood and thinking of taking the first step toward independence?

It's exciting to start earning your own money! And having a job could show you have initiative and a work ethic. You may learn worthwhile skills along the way and it’ll also look good on your CV (future employers and university admissions might take this into account). No matter what your job is, the experience you gain (e.g. working with people) could help you succeed later on.

Looking for job ideas?

Here are some of the businesses that typically hire teens:

  • Restaurants
  • Movie theatres
  • Cafes
  • Retail shops
  • Grocery stores

Apart from having a bank account to get your pay coming in, there are some things you should know.

Understanding taxes

What is an IRD number?

Your IRD (Inland Revenue Department) number is an eight or nine digit number unique to you, issued by Inland Revenue. It helps the Government know how much you earn and every employer will need it to process your wages.

Visit ird.govt.nz to find out how to set yours up.

Let us know your IRD number and update your Resident Withholding Tax (RWT) Rate.

The money you save in your bank account earns interest and you pay tax on this interest. The tax you pay is called 'Resident Withholding Tax' (RWT). We take the RWT from the interest you earn and pay this to Inland Revenue on your behalf. The amount paid to Inland Revenue will depend on your RWT rate and whether you have given us your IRD number.

If you don't give us your IRD number, you may risk paying more tax than you should, and your RWT rate will affect the amount of tax you pay. Calculate your rate.

Let us know your IRD number and RWT rate to make sure you're paying the right amount of tax.

Sorting your taxes

No IRD number?

Apply

Know your tax details?

Call us now on 0800 803 804.

KiwiSaver

You may have heard people talking about KiwiSaver. We're here to help you figure out what it is and how it works.

Think of KiwiSaver as a long term savings scheme; except you can't usually touch the money until you're either:

  1. buying your first home or
  2. retiring (yes that is ages away, but if you start now, check out how much money you could have to play with then!)

and your funds are invested on your behalf. This means your balance can move up and down based on changes in the market.

What would you like to know about KiwiSaver?

I am
and want to know

KiwiSaver is an easy and affordable way to save for your future. It is essentially an investment scheme you can't eat into and you can choose whether or not you want to sign up in the first place.

Why is it important to know about this when you get your first job?
There are heaps of benefits. Your retirement and buying your first home may seem ages away, but if you start contributing now, you'll thank yourself later.

Get more going into your KiwiSaver
Once you hit 18 you will become eligible to receive an annual Government contribution into your KiwiSaver account. For every $1 contributed, the Government will contribute 50c (up to a maximum of $521.43). And if you're working, your employer will start making payments into your KiwiSaver account on top of this.

As of now you can make contributions (deposits into your KiwiSaver) at any time - lump sums or regular automatic payments.

Contributions are money deposited into your KiwiSaver account (either by you, your employer or the Government) to be invested in the fund of your choice. Note: After you turn 18, you will become eligible to receive annual Government contributions into your KiwiSaver account.

Investment returns are the gains or losses in your KiwiSaver account, based on where the money was invested by your KiwiSaver provider. This amount can go up or down over time.

Withdrawals, fees and taxes are the ways that money can leave your KiwiSaver account and reduce your balance. Note: you cannot dip into these savings until you meet certain criteria (i.e. you're buying your first home, retiring, or in financial hardship).

  • What might your balance look like in the future?
    Play around with our ASB KiwiSaver Scheme Calculator to see how much your balance could grow over the years.

Which fund should I choose?
We offer a range of funds to suit different investors. We recommend that you choose a fund based on your investment timeframe.

Check out our 'Help me choose' tool with your parents to find the best fund for your situation.

There are different funds, some suited to shorter term goals like buying your first home and some suited to longer term goals like retirement.

To join KiwiSaver before you turn 18, you'll need legal guardian consent, and you'll need to go straight to the bank or provider to enrol.

For a full list of scheme providers go to kiwisaver.govt.nz.

You can also view kiwisaver.govt.nz/new/situation/under-18/ for more info.

KiwiSaver is an easy and affordable way to save for buying your first home or retirement. It is essentially a savings fund you can't eat into and you can choose whether or not you want to sign up for it.

Why is it important to know about this?
Employers will ask you whether or not you have a KiwiSaver. There are heaps of benefits of signing up. Your retirement and buying your first home may seem ages away, but if you start contributing now, you'll thank yourself later.

Get extra contributions going into your KiwiSaver
Now that you're 18, you'll need to choose whether you want to contribute 3%, 4% or 8% of your pay into your KiwiSaver. You can also make contributions (deposits into your KiwiSaver) at any time - lump sums or regular automatic payments.

For every $1 contributed, the Government will contribute 50c (up to a maximum of $521.43) which is called the 'annual Government contribution' - member tax credit. Along with compulsory employer contributions (where your employer puts money into your KiwiSaver on top of what you're putting in). So it all adds up without you having to think about it.

Contributions are money deposited into your KiwiSaver account (either by you, your employer or the Government) to be invested in the fund of your choice.

Investment returns are the gains or losses in your KiwiSaver account, based on where the money was invested by your KiwiSaver provider. This amount can go up or down over time.

Withdrawals, fees and taxes are the ways that money can leave your KiwiSaver account and reduce your balance. Note: you cannot dip into these savings until you meet certain criteria (i.e. you're buying your first home, retiring, or in financial hardship).

  • What might your balance look like in the future?
    Play around with our ASB KiwiSaver Scheme Calculator to see how much your balance could grow over the years.

Which fund should I choose?
We offer a range of funds to suit different investors. We recommend that you choose a fund based on your investment timeframe.

There are different funds, some suited to shorter term goals like buying your first home and some suited to longer term goals like retirement. ASB has a handy 'Help me choose' tool which, like it says, helps you choose.

There are three ways to join KiwiSaver when you turn 18:

  • Automatic enrolment when starting a new job
  • Opting in through your employer
  • Opting in through a KiwiSaver provider

To join KiwiSaver before you turn 18, you'll need legal guardian consent, and you'll need to go straight to the bank or provider to enrol.

Keeping up with KiwiSaver

Calculate your future balance

Play around with our ASB KiwiSaver Scheme Calculator to see how much money you could save up over the years.

Track your KiwiSaver

Signing up for KiwiSaver with ASB means you'll be able to see how your fund is tracking right here in the ASB Mobile app or FastNet Classic internet banking.

Chat to us to find out more

You could also pop into any ASB branch to chat with one of our experts. They can talk you through what your balance could look like, and how small changes you make now can make a big difference in the future.

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We're here to help

This page does not have regard to the financial situation or needs of any reader. As individual circumstances differ, you should seek appropriate professional advice.

Interests in the ASB KiwiSaver Scheme (Scheme) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides Scheme administration and distribution services. No person guarantees interests in the Scheme. Interests in the Scheme are not deposits or other liabilities of ASB. They are subject to investment risk, including possible loss of income and principal invested. For more information see the ASB KiwiSaver Scheme Product Disclosure Statement available from this website and the register of offers of financial products at www.business.govt.nz/disclose (search for ASB KiwiSaver Scheme).