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Young Rodney farmers in service tenancies (living on farm) will soon be able to use their KiwiSaver savings to buy their first home or farm without having to immediately move in, under changes announced by the Government.
Since 2010, Kiwis have been able to withdraw from their KiwiSaver accounts to assist with the purchase of a first home so long as they live in the homes they buy.
However, workers in service tenancies, such as farm workers, rural teachers, country cops, and defence personnel, have effectively been locked out of first home withdrawal because their jobs require them to live in employer-provided housing.
The change will allow service tenancy workers to use their KiwiSaver for a first home purchase without having to live in it.
The Act will also be changed to allow first-time farm buyers to put their KiwiSaver balances towards the purchase of a farm through a commercial entity they majority owned, where it would be their principal place of residence.
KiwiSaver rules currently allow the purchase of a farm under a KiwiSaver member’s name (so long as they intend to live on it). However, in practice, most farms are purchased through a company or trust.
Until now, that has prevented aspiring farmers from accessing KiwiSaver in the same way as someone buying a house in town.
Federated Farmers dairy chair Karl Dean said the change was a huge step forward for the next generation of farmers.”
He added that access to KiwiSaver could help young farmers strengthen their deposits and reduce debt.
Legislation giving effect to the changes will be introduced to Parliament in the middle of the year.
