Yes and no. The capital gains made on your KiwiSaver investment, or the returns, are tax free. You do however pay tax on any dividends or interest you receive on the assets your KiwiSaver fund invests in. Any dividends or interest you receive are taxed at your prescribed investor rate (PIR), which is based on the lesser of your previous full two years of income. Note that your KiwiSaver provider manages your tax obligations on your behalf, therefore there is no need to worry about it when you’re filing your year end tax return.
