KiwiSaver (First Home or Farm) Amendment Bill

KiwiSaver (First Home or Farm) Amendment Bill EXPLANATORY NOTE GENERAL POLICY STATEMENT This Bill amends the KiwiSaver Act 2006 to allow KiwiSaver members to access their savings for first home withdrawals in 2 additional circumstances. The Bill enables members to withdraw their KiwiSaver funds to contribute to the purchase of a farm through an entity or a trust where the farm will also be the member’s first home and principal place of residence. It also enables members subject to a service tenancy to withdraw their funds for the purchase of a first home without needing to live in it. The Bill achieves this by permitting withdrawals for a first home located on a farm if the purchase is made through an entity or a trust, and removing the requirement to intend to occupy the home for members subject to a service tenancy. REGULATORY IMPACT STATEMENT The Ministry of Business, Innovation and Employment produced a regulatory impact statement on 22 September 2025 to help inform the main policy decisions taken by the Government relating to the contents of this Bill. A copy of this regulatory impact statement can be found at— https://www.mbie.govt.nz/dmsdocument/31823-regulatory-impact-statement-kiwisaver-act-amendments-for-purchase-of-a-farm-and-for-service-tenants-to-purchase-a-first-home-proactiverelease-pdf https://www.regulation.govt.nz/our-work/regulatory-impact-statements/ CONSISTENCY WITH PRINCIPLES OF RESPONSIBLE REGULATION The Ministry of Business, Innovation, and Employment provided the following documents relating to its review of this Bill, and its process for developing it, for consistency with the principles of responsible regulation under the Regulatory Standards Act 2025: a consistency accountability statement on 12 August 2026: a summary of underpinning analysis on 12 August 2026. Copies of these documents can be found at— https://www.mbie.govt.nz/dmsdocument/32413-consistency-accountability-statement-kiwisaver-first-home-or-farm-amendment-bill https://www.mbie.govt.nz/dmsdocument/32414-summary-of-underpinning-analysis-kiwisaver-first-home-or-farm-amendment-bill The Minister of Commerce and Consumer Affairs prepared a statement on 12 August 2026 that briefly explains the Government’s reasons for any inconsistency with the principles of responsible regulation that is identified in the consistency accountability statement. A copy of the document can be found at— https://www.mbie.govt.nz/dmsdocument/32415-ministerial-statement-of-reasons-kiwisaver-first-home-or-farm-amendment-bill CLAUSE BY CLAUSE ANALYSIS Clause 1 is the Title clause. Clause 2 provides that the Bill comes into force on the first anniversary of Royal assent. AMENDMENTS TO PRINCIPAL ACT Clause 3 provides that Part 1 amends the KiwiSaver Act 2006 (the principal Act ). Clause 4 is a consequential amendment to the regulation-making power in section 228. Clause 5 makes several amendments to clause 8 of the KiwiSaver scheme rules in Schedule 1 (the KiwiSaver scheme rules ), which sets out the rules for withdrawing KiwiSaver funds for the purchase of a first home. Clause 5(2) and (4) inserts new paragraphs into clause 8(3) and (3B) of the KiwiSaver scheme rules to enable a service tenant (someone who is granted a tenancy as a condition of their employment) to make a withdrawal from their KiwiSaver scheme to purchase land for the use of a dwellinghouse, or an interest in a dwellinghouse on Māori land, even though they will not live in the dwellinghouse (due to their existing service tenancy on other land). The service tenant— must not have previously held an estate in land (whether as a joint tenant or tenant in common); or must otherwise be a qualifying person under the regulations (regulations 30 and 31 of the KiwiSaver Regulations 2006 provide that a qualifying person is someone who holds a notice signed by the Minister of Housing or a delegate that states that the Minister or delegate is satisfied that the assets and liabilities of the person represent a financial position that would be expected of a person who has never held an estate in land). Clause 5(5) inserts new clause 8(3C) into the KiwiSaver scheme rules to enable a KiwiSaver member (a member ) to make a withdrawal from their KiwiSaver scheme to contribute to the purchase of an estate in farm land by an entity or the trustees of a trust in certain circumstances. Those circumstances are that— the farm land is, or is intended to be, the principal place of residence for the member (or the member and the member’s family); and the member has more than a 50% ownership or control interest in the entity or trust (whether alone or together with a person or persons for whom the land is, or is intended to be, the principal place of residence); and the member has not previously held an estate in land (whether alone or as a joint tenant or tenant in common) or is a qualifying person under the regulations. Clause 5(7) inserts a number of definitions including class, entity, farm land, more than 50% ownership or control interest, security, service tenant, and specified person, with most definitions using or adapting those used in the Overseas Investment Act 2005. Clause 5(10) inserts a new subparagraph into clause 8(7) of the KiwiSaver scheme rules, which provides that, before a member’s KiwiSaver funds can be withdrawn to contribute to the purchase of farm land by an entity or trust, the manager of the KiwiSaver scheme must require certification from a solicitor that the member has a more than 50% ownership or control interest in the entity or trust purchasing the farm land. AMENDMENTS TO REGULATIONS Clause 6 provides that Part 2 amends the KiwiSaver Regulations 2006. Clause 7 consequentially amends regulation 30 to extend the test of a qualifying person under the regulations to the new subclauses under clause 8 of the KiwiSaver scheme rules. The Parliament of New Zealand enacts as follows: 1 Title This Act is the KiwiSaver (First Home or Farm) Amendment Act 2026 . 2 Commencement This Act comes into force on the first anniversary of Royal assent. 3 Principal Act This Part amends the KiwiSaver Act 2006. 4 Section 228 amended (Regulations) In section 228(1)(l), replace clause 8(3)(c)(ii) and (3B)(c)(ii) with clause 8(3)(c)(ii) and (e)(iii) , (3B)(c)(ii) and (e)(ii) , and (3C)(b)(iii) . 5 Schedule 1 amended In Schedule 1, clause 8(3)(c)(ii), replace the regulations with regulations made under this Act . In Schedule 1, after clause 8(3)(c), insert: d all of the following apply: i the land is used, or is intended to be used, for a dwellinghouse: ii the member is a service tenant of other land: iii the member has not, at any time before applying to make a withdrawal under this clause (whether before or after becoming a member of the KiwiSaver scheme), held an estate in land (whether alone or as a joint tenant or tenant in common); or e all of the following apply: i the land is used, or is intended to be used, for a dwellinghouse: ii the member is a service tenant of other land: iii the member is a qualifying person under regulations made under this Act. In Schedule 1, clause 8(3B)(c)(ii), replace the regulations with regulations made under this Act . In Schedule 1, after clause 8(3B)(c), insert: d both of the following apply: i the member is a service tenant of other land: ii the member has not, at any time before applying to make a withdrawal under this clause (whether before or after becoming a member of the KiwiSaver scheme), held an estate in land (whether alone or as a joint tenant or tenant in common); or e both of the following apply: i the member is a service tenant of other land: ii the member is a qualifying person under regulations made under this Act. In Schedule 1, after clause 8(3B), insert: 3C A member to whom this clause applies may make a withdrawal from the KiwiSaver scheme of which the member is currently a member, to contribute to the purchase, by an entity or the trustees of a trust, of an estate in farm land, if— a all of the following apply: i the farm land is, or is intended to be, the principal place of residence for the member or for the member and the member’s family: ii the member has a more than 50% ownership or control interest in the entity or trust (whether alone or together with a specified person): iii the member has not, at any time before applying to make a withdrawal under this clause (whether before or after becoming a member of the KiwiSaver scheme), held an estate in land (whether alone or as a joint tenant or tenant in common); or b all of the following apply: i the farm land is, or is intended to be, the principal place of residence for the member or for the member and the member’s family: ii the member has a more than 50% ownership or control interest in the entity or trust (whether alone or together with a specified person): iii the member is a qualifying person under regulations made under this Act. In Schedule 1, clause 8(5), replace subclauses (3)(b)(ii) and (3B)(b)(ii) with subclauses (3)(b)(ii) and (d)(iii) , (3B)(b)(ii) and (d)(ii) , and (3C)(a)(iii) . In Schedule 1, clause 8(6), insert in their appropriate alphabetical order: class , in relation to a class of securities, means that the securities have attached to them identical rights, privileges, limitations, and conditions entity means any of the following: a a body corporate: b a limited partnership or other partnership: c an unincorporated joint venture or other unincorporated body of persons farm land — a means land used exclusively or principally for agricultural, horticultural, or pastoral purposes, or for the keeping of bees, poultry, or livestock; but b does not include land used exclusively or principally for forestry activities (within the meaning of section 6(1) of the Overseas Investment Act 2005) more than 50% ownership or control interest ,— a in relation to a body corporate, means that the member, or the member together with a specified person,— i has more than 50% of each class of the body corporate’s securities; or ii has the power to control the composition of more than 50% of the board of directors (or governing body, however described) of the body corporate; or iii has the right to exercise or control the exercise of more than 50% of the voting power at a meeting of the body corporate: b in relation to a trust, means that the member, or the member together with a specified person,— i has a beneficial interest in or entitlement to more than 50% of the trust property; or ii is more than 50% of the persons who have the right to amend or control the amendments to the trust deed; or iii is more than 50% of the persons who have the right to control the composition of the trustees; or iv is more than 50% of the trustees of the trust: c in relation to a partnership, unincorporated joint venture, or other unincorporated body, means that the member, or the member together with a specified person,— i has a beneficial interest in or entitlement to more than 50% of the profits or assets of the partnership, venture, or body; or ii has the right to exercise or control the exercise of more than 50% of the voting power at a meeting of the partnership, venture, or body; or iii is more than 50% of the partners or members of the partnership, venture, or body: d in relation to a limited partnership, means that the member, or the member together with a specified person,— i holds more than 50% of the partnership interests (as defined in the Limited Partnerships Act 2008) of the partners of the limited partnership; or ii has the right to exercise more than 50% of the voting power at a meeting of the partners of the limited partnership; or iii is more than 50% of the general partners of the limited partnership; or iv is more than 50% of the persons who have the right to control the composition of the general partner or partners security has the same meaning as in section 6(1) of the Overseas Investment Act 2005 service tenant means a tenant of a service tenancy within the meaning of the Residential Tenancies Act 1986 specified person means a person for whom the farm land referred to in subclause (3C) is, or is intended to be, the principal place of residence with the member In Schedule 1, clause 8(7), replace It is a condition of subclauses (3) and (3B) with It is a condition of subclauses (3), (3B), and (3C) . In Schedule 1, replace clause 8(7)(c)(i) with: i a copy of an agreement for the sale and purchase (the agreement ) of the estate in land or of the interest in a dwellinghouse on Maori land, showing that the purchaser is— A the member; or B if the estate in land is farm land being purchased by an entity or the trustees of a trust as described in subclause (3C) , that entity or those trustees; and In Schedule 1, after clause 8(7)(c)(ii), insert: iia for an estate in farm land purchased by an entity or the trustees of a trust as described in subclause (3C) , a certificate signed by the member’s lawyer (who may be the same person as the practitioner) certifying that the lawyer has made reasonable inquiries and seen sufficient evidence to be satisfied that the member has a more than 50% ownership or control interest in the entity or trust (whether alone or together with a specified person); and 6 Principal regulations This Part amends the KiwiSaver Regulations 2006. 7 Regulation 30 amended (Qualifying person) In regulation 30, replace clause 8(3)(c)(ii) and (3B)(c)(ii) with clause 8(3)(c)(ii) and (e)(iii) , (3B)(c)(ii) and (e)(ii) , and (3C)(b)(iii) .