July Newsletter

Sasha Curin
Jul 31
3 min read

Parental Leave Update, KiwiSaver Changes & myIR Reminder

As we move into the new financial quarter, there are a few Inland Revenue updates that may be relevant for you or your team. First, the paid parental leave rate has been corrected, a useful update if you're navigating leave entitlements or top-up payments for staff.

There's also a reminder that two-step verification will soon be mandatory for all myIR users, so it’s worth checking your login settings. And with the KiwiSaver changes now in effect from 1 July, it’s a good time to review onboarding processes and ensure payroll systems reflect the new rules.

As always, we’ve summarised the key points below, with links to read more. Let us know if you'd like to chat about how any of these might affect your setup.

Summary of Recent Updates

Parental Leave Payment Rates Updated (Correction Issued)

From 1 July 2025, the weekly rate for Paid Parental Leave has increased to $788.66 (up from $754.87). This supports eligible parents taking up to 26 weeks off work to care for a newborn or new adopted child.

Employers should note the increased rate, particularly when managing top-up payments or leave forecasts. For parents already receiving payments, the revised figure will be applied automatically no action required on your end.

More from IRD

Mandatory Two-Step Verification for myIR

From 5 October 2025, IRD will require two-step verification (2SV) for all myIR accounts. This means every user whether personal or business must have an extra layer of login protection, such as a code sent to your phone or generated by an authentication app.

If you haven’t already enabled 2SV, now is the time to set it up. It’s quick and helps prevent unauthorised access to your account. For businesses using myIR through delegated users, it’s worth checking that all team members have their own secure logins, and that they’re prepared for this change.

Full Announcement

Quick KiwiSaver Reminder

From 1 July 2025, several key KiwiSaver changes have come into effect:

Government contribution rate halved - The $0.50 match per dollar you contribute has been reduced to $0.25, with the annual maximum now $260.72 (down from $521.43)
Income eligibility capped - Members with taxable income over $180,000 per annum are no longer entitled to the government contribution
16- and 17-year-olds now eligible - Young contributors in this age group can receive both government contributions and, from 1 April 2026, employer contributions

You generally don’t need to take any action, providers will apply contributions automatically. However, it’s worth reviewing contribution statements to ensure you’re still on track, especially if you’re approaching the income threshold

13 Tactics for Winners: A Tip to Succeed

We’ve created a guide called “13 Tactics for Winners” to help you succeed in business and life. It’s packed with practical advice on setting goals, staying motivated, and overcoming challenges.

This month, we’re highlighting one tactic from the guide to get you started:

This Month's Tactic: Demonstrate Courage

Success often means taking the road less traveled. As Robert Frost wrote, "Two roads diverged in a wood, and I took the one less travelled by - and that has made all the difference." Winners have the courage to be different, knowing that following the crowd rarely leads to exceptional results.

Ask yourself:

Do you have the courage to take a different path?
Does your team feel safe enough to innovate?

We'll share another tactic next month to keep you inspired. If you'd like to explore all 13 tactics now, you can download the full guide below.

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