Nearly a million Kiwis are paying too much tax on their Kiwisaver

Nearly a million Kiwis have been paying too much tax on their Kiwisaver and there's no way for Inland Revenue to pay it back.

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Despite the issue, there is currently no way for IRD to pay the tax back. Source: 1 NEWS

The maximum rate of 28 per cent of tax automatically kicks in when someone signs up to Kiwisaver.

For 950,000 New Zealander's this rate is too high, but it's up to the account holder to correct it.

Those affected are owed on average $44 a year for every year they're contributed.

If the person is underpaying, they're expected to pay it back.

National says the Government should hurry up and fix the issue.

A proposed new law has been written by National to speed up the process of people getting their money back.

"All we need now is Mr Nash to pay the Cash back to people," said National's Revenue spokesperson Andrew Bayley.

Revenue Minister Stuart Nash is looking into the issue.

Mr Nash said people need to check if they're paying the right amount of tax.

"Get it sorted before your next payday," said Mr Nash.