Editorial: KiwiSaver Changes Bring Joy
OPINION: Getting a foot on the property ladder is becoming easier for young farmers.
Ahead of the 2023 election, the National Party stated that it would allow young farmers to use their KiwiSaver to buy their first home, farm, herd or flock if elected.
Federated Farmers dairy chair Richard McIntyre says that 18 months since the election, there has been no action on that promise.
“The announcement was incredibly popular, particularly among the next generation of farmers, but also with older farmers who are looking for succession pathways,” McIntyre says.
He says that many people are awaiting those changes, “so it’s important they follow through and deliver on their promise”.
While National MP Suze Redmayne has submitted a Members’ Bill which would address some of the issues young farmers face, McIntyre says this is not enough.
“It’s great that Suze has put forward a bill - but it’s one of more than 70 others in the Members’ Ballot. It’s effectively a raffle and the bill may never be drawn,” he says.
He says that it “doesn’t even come close” to the Government delivering on its promise.
“It needs to be picked up as a Government Bill,” he says.
"To make that happen, we need the Minister of Agriculture, and all rural MPs, to really get in behind farmers and push hard on this issue. They should be championing the cause."
McIntyre claims that young farmers are being held back by outdated rules that are not reflective of the realities of farm ownership or rural employment.
“These rules are holding young farmers back years in their career progression as they scrimp and save every dollar to get on the ladder, particularly for sharemilkers and contract milkers,” he says.
He says that while KiwiSaver is designed to help New Zealanders to save for their retirement, however, for young farmers, owning a farm, herd or flock will set them up for their later years.
“These are ambitious young people who are tyring to build a future in farming, who just need the Government to get out of their way and allow them to access their own savings to invest in their future,” McIntyre says.
"A change in policy would give them a tangible pathway towards ownership and investment in agriculture - something the next generation of farmers desperately needs to see."
McIntyre says changing the rules would help level the playing field for young farmers and encourage greater use of KiwiSaver.
"A lot of young people in towns get into KiwiSaver because they know they can use it as a great way to build a deposit for their first house. "In their early years, that’s effectively what they’re doing - not saving for their retirement.
"On the other hand, so many young farmers don’t use KiwiSaver because they know they’re not allowed to access that for their first home, farm, herd, or flock.
"They won’t be able to use those savings until their retirement, whereas there are really important things they need to invest in early in their careers, long before retirement age.
"It’s an unfair playing field and young farmers are missing out on a key step towards growing their long-term wealth."
