Legislation is progressing to allow rural workers to use their KiwiSaver funds to buy their first home.

In a joint statement, Finance Minister Nicola Willis said the KiwiSaver (First Home or Farm) Amendment Bill was introduced last week. 

“Many farm workers are required to live where they work. But a first-home withdrawal requires you to move into the home you buy, so they have been paying into KiwiSaver alongside everyone else while shut out of a withdrawal every other member can make.

“That rule was written with a suburban street in mind, not a farm gate.”

Commerce and Consumer Affairs Minister Cameron Brewer said the Bill also allowed first-time farm buyers to use their KiwiSaver towards a farm bought through a company, trust or partnership they majority own and control, where the farm would be their main home.

Current rules only allow it if the farm is in the buyer’s own name.

“A farm is a business and a home at the same time, which is why almost nobody buys one in their own name. The KiwiSaver rules were never written with that in mind, and aspiring farm owners have been shut out because of it,” Mr Brewer said.

“So a young couple who have spent a decade milking someone else’s cows and saving hard have been blocked from their own KiwiSaver by a technicality about whose name is on the title.”

Meanwhile, Federated Farmers urged the government to move the legislation further forward before the House rises for the election.

Federated Farmers dairy chairman Karl Dean said the changes were long overdue and would make a meaningful difference for young farmers across New Zealand.

It was great to see the Bill being added to the Order Paper this week but the government needs to go further.

“Farmers don’t want to see these important changes stall now. The legislation needs to have its first reading before the House rises so it can progress to Select Committee.”

The KiwiSaver changes benefit young farmers, farm workers and anyone who lived in a service tenancy as part of their employment including military personnel, rural teachers, country cops, and tourism staff.

“It’s been clearly signalled that changes are on the way, but progress has been slow. Young farmers have been waiting to secure their long-term financial futures.

“They’ve been incredibly patient, but they shouldn’t have to wait any longer. That’s why we’re really urging the government to make these changes a reality.”