A new members’ bill from MP Suze Redmayne will help service tenants, like farm workers and Defence Force employees, to use their KiwiSaver to buy a first home.
Speaking to Q+A, the National Party and Rangitīkei MP said she wants to help farmers – “the backbone of New Zealand” – to buy their first farm.
Redmayne said she was inspired to push the legislation after a stock manager working on her Tunnel Hill farm couldn’t use his KiwiSaver to buy his first house.
“But the current regulations meant that he couldn’t because he wasn’t able to live in it for six months because obviously he worked on the farm. He didn’t think that was right, and neither did I,” Redmayne said.
Farmers can currently use KiwiSaver to buy a farm in their name but not a company’s name. Most farms are owned by companies, such as a family.
Redmayne wants to make it easier for a person to use KiwiSaver using a company name as long as that person owns the business.
“Farming has been the backbone of New Zealand for the last 100-plus years and I think we need to do everything we can – and I’m certainly motivated to do everything I can – to make sure that continues.
“I think that with farming your business and your farm are one and the same – they’re inextricably linked.”
Redmayne said the bill could ensure farmers can look after their workers.
“When you’re living on a farm, you have great relationships with the people that work with you. They usually live 50 or 100 metres away from where you are, and you want them to do well and you want to give them opportunities, especially that are going to help them in their retirement.”
Federated Farmers supports Redmayne’s bill but wants it to go further by allowing farmers to use KiwiSaver to buy their first herd or flock.
Federated Farmers campaigned the National government in 2023 to change KiwiSaver rules to support younger farmers.
The National Party committed to support the request as well as 11 other policy priorities.
In a statement last year, the Rangitīkei MP explained how her bill worked.
“Firstly, it allows a KiwiSaver member to withdraw funds to buy a farm through an entity they are a majority shareholder in.
“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.
“This change makes the legislation more practical and applicable to rural situations. It’s about supporting farm ownership and ensuring the future of farming.
“Secondly, the bill exempts those in service tenancies, such as farm workers and many military personnel, from the requirement to live in their first home dwelling for at least six months when they purchase it with their KiwiSaver funds.
“Many farmers and military personal will live in a service tenancy for a large portion of their career, making it difficult for them to get on the property ladder. This change is about creating a level playing field and making it easier for more people to access a first home using their KiwiSaver funds, while also increasing property ownership rates.”
Q+A with Jack Tame is made with the support of New Zealand On Air
