INSIGHT
UPFRONT KIWISAVER
Accessing KiwiSaver to feather the nest Farm workers living in provided accommodation can’t withdraw their KiwiSaver funds to boost a deposit on a house. Phil Edmonds investigates the campaign to correct this anomaly and looks into what can be done to improve farm property ownership rates.
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n case anyone needs reminding, it’s not only the young and urban-based who are being disadvantaged in their bid to get on the property ladder with house prices continuing to spiral to the sky. Ironically, also disadvantaged are those who might otherwise be considered protected from the predicament – those with jobs that have service tenancies (housing provided), of which many are working onfarm. It isn’t that those working onfarm are any worse off financially than people in town. However, those looking to buy a house to live in can withdraw their accumulated KiwiSaver to fund a deposit. Meanwhile, people living in accommodation provided as part of their job don’t have this option because they are unable to live in a house they buy. Federated Farmers are out to do something about this anomaly. First, before the why and how, a quick step-by-step on the rules as they stand. The KiwiSaver First Home Withdrawal scheme is designed to help first home buyers purchase residential property. To be eligible for the KiwiSaver First Home Withdrawal Scheme you must be purchasing your first home, have been a member of KiwiSaver for a minimum of three years, have your KiwiSaver account with a KiwiSaver provider that allows saving withdrawals, and (frustratingly for farm workers), intend to live in the property for at least six months. So, what’s the basis of opposing the rule? Most significantly, it’s deemed to be unfair. Federated Farmers
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Dairy Exporter | www.nzfarmlife.co.nz | April 2021
