KiwiSaver law change will unlock first-home withdrawals for rural workers

Monday, 2 March 2026

Nicola Willis said the Government would make a technical amendment so service tenancy workers can withdraw their KiwiSaver funds to buy a first home without being required to live in it while their job requires them to reside elsewhere (file photo).

Some farm workers and other rural employees required to live in employer-provided housing have been unable to use their KiwiSaver savings to buy a first home under current rules - a barrier the Government now plans to remove.

Finance Minister Nicola Willis and Commerce and Consumer Affairs Minister Scott Simpson said they intend to amend the KiwiSaver Act 2006 to remove barriers affecting workers in service tenancies.

For more than a decade, KiwiSaver members have been able to withdraw their savings to help buy a first home, provided they intend to live in the property as their principal place of residence.

However, workers whose jobs require them to live in housing supplied by their employer — including many farm workers, rural teachers, country police officers and defence personnel — have generally not met that “live-in” requirement.

As a result, they have been unable to access their KiwiSaver savings for a first-home purchase under current settings.

Willis said the Government would introduce legislation to allow service tenancy workers to withdraw their KiwiSaver funds to buy a first home without being required to live in it while their employment requires them to reside elsewhere.

The proposed changes would retain KiwiSaver’s core purpose of supporting retirement savings and first-home ownership, she said.

Simpson said the reforms would also update the rules for first-time farm buyers.

Under current settings, members can withdraw KiwiSaver funds to buy a farm in their own name, provided they intend to live on it.

However, most farms are purchased through a company or trust structure, which has prevented some aspiring farmers from accessing their savings in the same way as someone buying a residential property directly.

The proposed amendments would allow first-time buyers to use their KiwiSaver balances toward the purchase of a farm through a commercial entity they majority own, where it will be their principal place of residence.

Legislation is expected to be introduced to Parliament mid-year. The reforms follow a Member’s Bill from Rangitīkei MP Suze Redmayne.

The amendments aim to better align KiwiSaver settings with employment arrangements common in rural New Zealand, while maintaining the scheme’s focus on long-term savings and first-home ownership.