Protecting and helping families since 1985

KiwiSaver – changes for first home buyers

During the 2014 election campaign, National indicated that they would be making changes to KiwiSaver’s benefits for first home buyers. These changes include:

ALLOWING ACCESS TO MEMBER TAX CREDITS   (the Govt annual contribution top-up)

Members making a first home withdrawal will be able to withdraw any member tax credits
they’ve accumulated, in addition to any employee, employer or voluntary contributions
(the $1000 kickstart will still be excluded)

 

KIWISAVER HOMESTART GRANT

The First Home Deposit Subsidy will be replaced by the KiwiSaver HomeStart Grant, which doubles
the support given to members who are buying a newly built home.
Members buying an existing home can still receive a contribution up to $1,000 for each year
of membership, up to a maximum of 5 years.
For members buying a newly built home, this is doubled to $2,000 for each year of membership, up to a maximum of 5 years – $10,000. (income and house price caps still apply)

INCREASED HOUSE PRICE CAPS FOR HOMESTART GRANT AND WELCOME HOME LOANS

$550,000 = Auckland:
$450,000 = Wellington, Queenstown, Christchurch, Selwyn District, Hamilton, Tauranga, Western Bay of    Plenty,    Kapiti Coast,    Upper Hutt, Hutt City, Porirua, Tasman, Nelson & Waimakariri:
$350,000 = All other areas: 

These changes are scheduled to take effect from 1 April 2015. The HomeStart Grant and increased house price caps won’t require any new legislation, but allowing access to member tax credits as part of a first home withdrawal will require changes to the KiwiSaver Act. A Bill to allow this is currently before Parliament, but it hasn’t yet passed – we’ll keep you updated when we know more.

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Mike Bennett

In 1985, after 7 years in the banking industry in NZ & London, Mike Bennett joined the Life Insurance Industry as an adviser. In 2001 he started “Acorn Insurance & Investment Ltd” with the key principle; “to satisfy the insurance and investment needs of New Zealanders with the best products and service possible”. To achieve the guiding principle of “best products and service” the “Acorn” uses various industry research tools to identify the best products and prices to meet our client’s needs. Acorn has agencies with most of New Zealand’s major insurance companies which means we are free to use whichever products best meet our client’s needs. Believing that if we get it right for our clients we will achieve win-win solutions. We also recognise that nearly all insurance solutions are a compromise between the benefits you’d like to have versus the premiums you’re prepared to pay – with this in mind we WON’T be trying to sell you more insurance than you need or want !!

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