February 28, 2026 • 8 mins
The Government has highlighted issues within the KiwiSaver Act that have prevented a number of Kiwis from using their accounts to buy a home.
Many workers in rural areas, like farm workers, rural police and teachers, are often required to live in housing provided by their employer - which stops them from being able to withdraw their KiwiSaver for a first home as they're unable to live in it.
These issues have also stopped farmers from being able to purchase their own farm as it's not covered by current legislation.
Changes announced this morning would remove those barriers.
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Speaker 1 (00:05):
You're listening to the Weekend Collective podcast from News Talks EDB.
Speaker 2 (00:10):
The government has highlighted issues within the key We Saver
Act that have prevented a number of key Wes from
using their accounts to buy a home, and many workers
in rural areas, like farm workers, rural police, teachers, et cetera,
are often required to live in housing provided by their employer,
which stops them being able to withdraw the Keiwi Saver
for a first time because they're not going to be
living in it. These issues have also stopped farmers being
(00:31):
able to purchase their own farmers. It's not current covered
by the current legislation, so changes announced this morning will
remove those barriers. And Finance Minister Nicola Willis is with
me now.
Speaker 3 (00:43):
Nicola, good afternoon, Good afternoon, Great to be on the show.
Speaker 2 (00:46):
Thanks for your time. So you're making an exception for
workers in service tenancies or are required to live in
provided accommodation. How many people will this affect?
Speaker 3 (00:58):
Well? The sign of how disconnected urban policy making can
be from rural community. Officials don't hold any official numbers
on the number of service tenancies on farms. What we
have better information about is the government's own service tenancy.
So across the education system they're about two hundred and
(01:18):
thirty five of those for rural teachers and principles police,
about two hundred and forty, Health about five hundred, and
there's about eight hundred and fifty New Zealand Defense personnel
who are in service tenancies currently, although that number fluctuates
a bit, so we know that there are hundreds of
people in this situation. We know many farm workers if
(01:40):
they want to work on farm where there is a
stockhandler and manager, then they have to live close to
that place, because boy or boy, they get up there
in the morning.
Speaker 2 (01:48):
Don't they. What about I mean that almost leads to
the argument that why not allow it for all renters,
for anyone who just wants to buy their first house,
whether or not they live in it or or not not,
then we're all in the same sort of level playing field.
Speaker 3 (02:01):
Well, no, that would be a big departure because the
principle has been that for more than a decade you've
been able to use your key, we savor to buy
a home so long as you live in it, so
long as it's intended to your house, rather than just
an investment where that breaks down is of course, for
these people in rural communities, they don't have a choice
(02:21):
in the matter. If you're living in the city, you
have the choice of buying a smaller house or a
cheaper house to get into it. These rural workers, is
there a condition of employment are required to live in
their employers' rental property. So it's a bit different because
their choices are constrained.
Speaker 2 (02:38):
It would be mind you, I could argue that if
you're employed in Auckland, you might think, well, there's fat
chance I'm going to get anything that's not going to
be an hour's commute. I want to buy something done.
And I don't know Ashburton well.
Speaker 3 (02:51):
Because you do have a choice of properties that you
can live in, and your employer isn't saying you must
live in the suburb, you must live in this home.
The reality for rural workers is, and I met with
a group of young farmers today that many of them
will spend several years working in farm properties and so
for many of them meant they either haven't joined key
(03:13):
We Savor because they haven't seen it as a vehicle
towards getting on the property ladder, or once they're in
key We saver and one day they go to withdraw
it to get on the property leadder, they realize it
doesn't work for them. So from their perspective, it's a
real unfairness. Whereas most people living in the city know
that key we favor will support them until first time purchased.
When that time comes.
Speaker 2 (03:34):
What about farms then, because the farm's not just a dwelling,
is it, So it's a productive commercial asset. So do
you how do you sort of justify the rationale there?
You're not just it's because you might not be just
buying your first time, you're buying something that's going to
generate income for you.
Speaker 3 (03:50):
Well, that's already the law. So in the Key We
Saver Act as it is, you're already allowed to use
your key We Saver savings to buy a farm if
you're going to live in a house on that farm.
So that's already the law. The tweak that we're making
that's slightly different is that at the moment the law
says if you're the sole proprietor of that farm. Of course, realistically,
(04:15):
more than eighty percent of farms are brought through a
commercial vehicle with either a partnership or a company or
a trust, and so we're making a tweak to reflect
that again, just to be practical about the circumstances in
which someone would want to use their keV savored by
this farm.
Speaker 2 (04:30):
Hang on, So what was before it required you to
be the sole proprietor role. Yeah, so now it will
enable you to do it as part of a partnership
or other or.
Speaker 3 (04:44):
Not require you to just allow the other allow you to.
But you have to be the majority owner and you
have to control that commercial entity. So the idea might
be that if you're a couple buying a farm, you
could go into that in a company structure, as is
the norm, and you would still be the owner of
that farm. You'd be the controlling interest in that farm,
(05:04):
but you'd be able to have that commercial structure recognized
for key.
Speaker 2 (05:08):
We save this. I mean, it does get blurry, doesn't it,
Because then you'll bet people who say, well, hang on,
I might not be a farmer, but I'd like to
use my key we saver to buy in the first
business and get ahead.
Speaker 3 (05:18):
Well, I think it's quite different because you actually live
on the farm, it is your home. And when New
Zealand changed the key we Save rules, many years ago
to allow people to use it to purchase the home.
What we were recognizing is that if you own a
home when you go to retire, you're going to be
better off financially socially. The research says that's a good
(05:39):
thing in retirement, and Key West has partly been really successful.
Lot of young people have joined it because it's a
great way to get together that deposit for your first time.
More than four hundred and fifty thousand New Zealanders have
used it for that purpose. And today's announcement really for us,
was about fairness. Rural communities feel locked out of that
choice and that option. It's just not been practical for them,
(06:01):
and with a few small tweaks we give them the
same opportunity available to them those of us living in
the city.
Speaker 2 (06:06):
I've got a text here that says, this is a
stop to the rural community. I'd love to buy a
business and live above it, and live above the shop.
I mean, that's that is a reasonable argument. Somebody wants
to buy their own business. They're happy to live even
on the premises. It's what's your response to a message
like that.
Speaker 3 (06:23):
Well, our view has been that given it's already the
law that you are already allowed to use TV save
towards a farm purchase if you are going to live
on it. Really, all we've done is tweak it so
that you can do that practically via a commercial entity.
And of course that was a decision of a previous
parliament that actually recognizing that owning a farm with a
(06:47):
home on it is consistent with the principle of home ownership.
And look, look, I understand those saying well, you've got
to make sure that the scheme remains robust. That's absolutely
the case. So we'll be making sure that as we
draft the legislation and listen to stakeholders, we keep it.
We keep it tight, we keep it control. But basic ideas,
(07:07):
you have been able to use keysavtor by our home
for many years now and we're sticking to that.
Speaker 2 (07:11):
How do you generally feel about that there? Because there
are constant there's constant commentary about people saying, look, you know,
it's all very well to say that, but it's all
eroding the savings stock and we should just make key
we save a key, we savor.
Speaker 3 (07:22):
Well, I'm just realistic about it, which is so many
young people I speak to when I say are you
and key we Saver, They say yes, and I'm using
it to save my home deposit. I've spoken to lots
of parents who say they're really pleased to see their
children building up a savings habit because often they're contributing
more than the default contribution to key we Saver because
(07:45):
it's such a great way of seeing their deposit grow
for their first time. So I think what having that
provision and it allows is it just means a whole
bunch of people grab the savings habit early who may
not otherwise have. And I'm also a big fan of
home ownership term of people are getting into their own home.
That's a good thing for them, families, our communities and
(08:06):
it gives me a mistake in the New Zealand economy.
So that's positive.
Speaker 2 (08:09):
Great. Okay, hey Nicola, thanks so much for your time
stuff and I really appreciate it.
Speaker 3 (08:14):
Thank you.
Speaker 2 (08:14):
Cheers. That's Nicola Willis, the Finance Minister.
Speaker 1 (08:17):
For more from the Weekend Collective, listen live to News
talks 'b weekends from three pm or follow the podcast
on iHeartRadio.
You're listening to the Weekend Collective podcast from News Talks EDB.
Speaker 2 (00:10):
The government has highlighted issues within the key We Saver
Act that have prevented a number of key Wes from
using their accounts to buy a home, and many workers
in rural areas, like farm workers, rural police, teachers, et cetera,
are often required to live in housing provided by their employer,
which stops them being able to withdraw the Keiwi Saver
for a first time because they're not going to be
living in it. These issues have also stopped farmers being
(00:31):
able to purchase their own farmers. It's not current covered
by the current legislation, so changes announced this morning will
remove those barriers. And Finance Minister Nicola Willis is with
me now.
Speaker 3 (00:43):
Nicola, good afternoon, Good afternoon, Great to be on the show.
Speaker 2 (00:46):
Thanks for your time. So you're making an exception for
workers in service tenancies or are required to live in
provided accommodation. How many people will this affect?
Speaker 3 (00:58):
Well? The sign of how disconnected urban policy making can
be from rural community. Officials don't hold any official numbers
on the number of service tenancies on farms. What we
have better information about is the government's own service tenancy.
So across the education system they're about two hundred and
(01:18):
thirty five of those for rural teachers and principles police,
about two hundred and forty, Health about five hundred, and
there's about eight hundred and fifty New Zealand Defense personnel
who are in service tenancies currently, although that number fluctuates
a bit, so we know that there are hundreds of
people in this situation. We know many farm workers if
(01:40):
they want to work on farm where there is a
stockhandler and manager, then they have to live close to
that place, because boy or boy, they get up there
in the morning.
Speaker 2 (01:48):
Don't they. What about I mean that almost leads to
the argument that why not allow it for all renters,
for anyone who just wants to buy their first house,
whether or not they live in it or or not not,
then we're all in the same sort of level playing field.
Speaker 3 (02:01):
Well, no, that would be a big departure because the
principle has been that for more than a decade you've
been able to use your key, we savor to buy
a home so long as you live in it, so
long as it's intended to your house, rather than just
an investment where that breaks down is of course, for
these people in rural communities, they don't have a choice
(02:21):
in the matter. If you're living in the city, you
have the choice of buying a smaller house or a
cheaper house to get into it. These rural workers, is
there a condition of employment are required to live in
their employers' rental property. So it's a bit different because
their choices are constrained.
Speaker 2 (02:38):
It would be mind you, I could argue that if
you're employed in Auckland, you might think, well, there's fat
chance I'm going to get anything that's not going to
be an hour's commute. I want to buy something done.
And I don't know Ashburton well.
Speaker 3 (02:51):
Because you do have a choice of properties that you
can live in, and your employer isn't saying you must
live in the suburb, you must live in this home.
The reality for rural workers is, and I met with
a group of young farmers today that many of them
will spend several years working in farm properties and so
for many of them meant they either haven't joined key
(03:13):
We Savor because they haven't seen it as a vehicle
towards getting on the property ladder, or once they're in
key We saver and one day they go to withdraw
it to get on the property leadder, they realize it
doesn't work for them. So from their perspective, it's a
real unfairness. Whereas most people living in the city know
that key we favor will support them until first time purchased.
When that time comes.
Speaker 2 (03:34):
What about farms then, because the farm's not just a dwelling,
is it, So it's a productive commercial asset. So do
you how do you sort of justify the rationale there?
You're not just it's because you might not be just
buying your first time, you're buying something that's going to
generate income for you.
Speaker 3 (03:50):
Well, that's already the law. So in the Key We
Saver Act as it is, you're already allowed to use
your key We Saver savings to buy a farm if
you're going to live in a house on that farm.
So that's already the law. The tweak that we're making
that's slightly different is that at the moment the law
says if you're the sole proprietor of that farm. Of course, realistically,
(04:15):
more than eighty percent of farms are brought through a
commercial vehicle with either a partnership or a company or
a trust, and so we're making a tweak to reflect
that again, just to be practical about the circumstances in
which someone would want to use their keV savored by
this farm.
Speaker 2 (04:30):
Hang on, So what was before it required you to
be the sole proprietor role. Yeah, so now it will
enable you to do it as part of a partnership
or other or.
Speaker 3 (04:44):
Not require you to just allow the other allow you to.
But you have to be the majority owner and you
have to control that commercial entity. So the idea might
be that if you're a couple buying a farm, you
could go into that in a company structure, as is
the norm, and you would still be the owner of
that farm. You'd be the controlling interest in that farm,
(05:04):
but you'd be able to have that commercial structure recognized
for key.
Speaker 2 (05:08):
We save this. I mean, it does get blurry, doesn't it,
Because then you'll bet people who say, well, hang on,
I might not be a farmer, but I'd like to
use my key we saver to buy in the first
business and get ahead.
Speaker 3 (05:18):
Well, I think it's quite different because you actually live
on the farm, it is your home. And when New
Zealand changed the key we Save rules, many years ago
to allow people to use it to purchase the home.
What we were recognizing is that if you own a
home when you go to retire, you're going to be
better off financially socially. The research says that's a good
(05:39):
thing in retirement, and Key West has partly been really successful.
Lot of young people have joined it because it's a
great way to get together that deposit for your first time.
More than four hundred and fifty thousand New Zealanders have
used it for that purpose. And today's announcement really for us,
was about fairness. Rural communities feel locked out of that
choice and that option. It's just not been practical for them,
(06:01):
and with a few small tweaks we give them the
same opportunity available to them those of us living in
the city.
Speaker 2 (06:06):
I've got a text here that says, this is a
stop to the rural community. I'd love to buy a
business and live above it, and live above the shop.
I mean, that's that is a reasonable argument. Somebody wants
to buy their own business. They're happy to live even
on the premises. It's what's your response to a message
like that.
Speaker 3 (06:23):
Well, our view has been that given it's already the
law that you are already allowed to use TV save
towards a farm purchase if you are going to live
on it. Really, all we've done is tweak it so
that you can do that practically via a commercial entity.
And of course that was a decision of a previous
parliament that actually recognizing that owning a farm with a
(06:47):
home on it is consistent with the principle of home ownership.
And look, look, I understand those saying well, you've got
to make sure that the scheme remains robust. That's absolutely
the case. So we'll be making sure that as we
draft the legislation and listen to stakeholders, we keep it.
We keep it tight, we keep it control. But basic ideas,
(07:07):
you have been able to use keysavtor by our home
for many years now and we're sticking to that.
Speaker 2 (07:11):
How do you generally feel about that there? Because there
are constant there's constant commentary about people saying, look, you know,
it's all very well to say that, but it's all
eroding the savings stock and we should just make key
we save a key, we savor.
Speaker 3 (07:22):
Well, I'm just realistic about it, which is so many
young people I speak to when I say are you
and key we Saver, They say yes, and I'm using
it to save my home deposit. I've spoken to lots
of parents who say they're really pleased to see their
children building up a savings habit because often they're contributing
more than the default contribution to key we Saver because
(07:45):
it's such a great way of seeing their deposit grow
for their first time. So I think what having that
provision and it allows is it just means a whole
bunch of people grab the savings habit early who may
not otherwise have. And I'm also a big fan of
home ownership term of people are getting into their own home.
That's a good thing for them, families, our communities and
(08:06):
it gives me a mistake in the New Zealand economy.
So that's positive.
Speaker 2 (08:09):
Great. Okay, hey Nicola, thanks so much for your time
stuff and I really appreciate it.
Speaker 3 (08:14):
Thank you.
Speaker 2 (08:14):
Cheers. That's Nicola Willis, the Finance Minister.
Speaker 1 (08:17):
For more from the Weekend Collective, listen live to News
talks 'b weekends from three pm or follow the podcast
on iHeartRadio.
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