Source: Federated Farmers
Federated Farmers is urging the Government to keep moving forward with promised KiwiSaver amendment legislation before the House rises for the election.
“These changes are long overdue and will make such a meaningful difference for young farmers across the country,” Federated Farmers dairy chair Karl Dean says.
“It’s great to see progress with the KiwiSaver (First Home or Farm) Amendment 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 Bill would allow farm staff and others living in service tenancies like rural teachers and country cops to use their KiwiSaver to buy a house without immediately moving in.
Federated Farmers felt this change was so important the organisation included it in their list of 12 policy priorities for this term of Parliament.
“The Government said they were going to make these changes, and we plan to hold them to that promise on behalf of our members,” Dean says.
“It’s been an incredibly busy term of reforms for the coalition and House time is at a premium as the election looms, but this would only take 40-minutes to progress.
“We urge the Government to make this a priority and to progress these important changes to Select Committee – and for the Opposition to support it.”
KiwiSaver changes are not just for the benefit of young farmers and farm workers, but anyone who lives in a service tenancy as part of their employment.
This includes military personnel, rural teachers, country cops, and tourism staff.
Dean says the Bill will allow them to use their savings to purchase a house – a withdrawal right available to anyone else to help get them on the property ladder.
The Bill also allows first-time farm buyers to use their KiwiSaver towards a farm bought through a company, trust or partnership they majority own and control.
“Current rules only allow it if the farm is in the buyer’s own name. That’s an impractical technicality that needs to be changed,” Dean says.
“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.”