Viewpoint – KiwiSaver shakeup

Farmers and other rural workers will be pleased to hear that the Government is removing barriers that have stopped many of them from using their KiwiSaver accounts to buy their first homes.

Since 2010, other New Zealanders have been able to withdraw from their KiwiSaver accounts to help purchase a first home, provided they live in the homes they buy. But for workers in service tenancies – like farm workers, rural teachers, police officers in country towns and defence personnel – that’s been almost impossible. Their jobs often require them to live in employer-provided housing, effectively locking them out of first-home withdrawals.

So, we are now making a technical change to the KiwiSaver Act so that workers in service tenancies are no longer denied the chance to get a foot on the property ladder. This change will allow these workers to use their KiwiSaver for a first-home purchase without having to live in the property themselves.

The Act will also be amended to allow first-time farm buyers to put their KiwiSaver balances towards buying a farm through a commercial entity they majority own, where it will be their principal place of residence. Right now, KiwiSaver rules only allow the purchase of a farm in a member’s own name (if they intend to live on it). In practice, though, most farms are bought through a company or trust, which has stopped many would-be farmers from using their hard-earned savings.

These targeted, practical changes back rural New Zealand all the way. They remove unnecessary barriers and recognise the commercial reality of how farms are owned today.

Legislation to implement these changes will be introduced to Parliament in the middle of the year. Once in place, the changes will help more rural families turn their long-term commitment to their communities into a real stake in the land they work on and call home.

On another note, I recently had the privilege of attending the Mangawhai Surf Life Saving long lunch fundraiser at Ocean Restaurant. The event was truly memorable, with the legendary world champion surfer, Kelly Slater, as the guest speaker – what an incredible experience!

A special congratulations goes out to Lisa and Jess for their outstanding effort in organising such a fantastic fundraiser. Their dedication really shone through, and it was wonderful to see the community come together for such a great cause.

It’s inspiring to see the club back on its feet after facing the challenges of storm damage in 2023. The event was a testament to the resilience and spirit of everyone involved.