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The announcement that KiwiSaver funds could be used for purchasing a home that the buyer wouldn’t have to live in received industrywide support at the launch in Wairarapa on Sunday.
From the middle of the year rural people can use their KiwiSaver to purchase a home and create an asset while still living and working on the farm.
Finance Minister Nicola Willis, who made the announcement, described the move as “practical for people living in rural communities”.
“The reality is that currently people living on the farm where they work don’t meet the current Kiwisaver requirements.
“The changes will allow them to get on the property ladder and help them to build an asset.
“It’s vital we attract young people into rural areas and the KiwiSaver reform will reduce some barriers.
“Officials in Wellington questioned why we would change something that worked,” Willis said.
“Our job is to listen to the community, not officials.”
She thanked Federated Farmers for its efforts towards facilitating the reform and Rangitīkei MP Suze Redmayne for introducing a Private Member’s Bill to make the changes happen.
Federated Farmers board member Karl Dean said the new legislation fixes the problem of KiwiSaver being orientated to urban citizens and not those in the provincial hinterland.
“It is great in that it will encourage youngsters to join KiwiSaver and build their personal wealth. Rural NZ is quite different to urban NZ and our rules need to reflect that,” he said.
“Federated Farmers argued for the reforms and the government has listened to us.”
Wairarapa YFC president Jackson Woodhouse was effusive about the reforms.
“It allows young people to get into the property market and creates a pathway to farm ownership,” he said.
“It addresses a need; it is a big step forward. It will also encourage people my age to consider farming as a career.
“It will make it a lot easier for us to get a decent financial stake,” he said.
That view was supported by Growing Future Farmers student Brileigh Hyland, who was looking forward to finishing her training and getting a job on a farm.
“It will make it far easier for us to get going,” she said.
“I’m looking forward to starting a KiwiSaver account.”