Editorial: KiwiSaver Changes Bring Joy
OPINION: Getting a foot on the property ladder is becoming easier for young farmers.
The present KiwiSaver rules say a person can only get money out for a deposit on their first home if they live in it. But farm workers along with others in 'service tenancies' such as defence personnel, clergy, some teachers and police officers in rural communities have effectively been locked out of first home ownership because their jobs require them to live in employer-provided housing.
The initiative to get the law changed has come from the National MP for Rangitikei and farmer Suze Redmayne who says some years ago her stock manager came to her and pointed out the anomaly.
"My husband and I talked to our bank manager who confirmed that he was right, and we all agreed that this wasn't fair," she told Rural News.
"In the 2023 election campaign I raised the issue and then in 2024 put a members bill in the ballot, which was drawn out, and since then it's become a government bill," she says.
Redmayne says there has been widespread support for the change and at the last election, Federated Farmers rated it the third most important issue out of the 12 they raised with government. She says it's all about levelling the playing field.
The other important change being made will allow the withdrawal of KiwiSaver funds to buy a farm through an entity in which they are a majority shareholder. The current law states a farm must be purchased in their own name, but a farm is usually owned by an entity because it is both a business and a home.
Read More:
- Federated Farmers Celebrates KiwiSaver Rule Change for Young Farmers Buying First Home or Farm
- McClay urges patience on KiwiSaver for first-time farmers
- Federated Farmers supports KiwiSaver access for first farm buyers
"This change reflects the commercial reality of modern farm ownership. It will help young farmers put down roots, invest in their futures, and continue contributing to an industry that fuels our entire economy," says Redmayne.
She says at present there is no real incentive for farm workers to invest in KiwiSaver, but this move will be a game changer for farm workers who are the heart and soul of the primary sector.
"We know that financially and socially you are so much better off wshen you own your own home in your retirement, but up until now there is a risk that people who live in service tenancies will never achieve these goals," she says.
The bill has now been approved by cabinet and will likely be introduced into parliament mid-year and then be referred to a select committee.
