PHOTO: KiwiSaver. FILE
National Proposes Allowing Under-30s to Access KiwiSaver for Rental Bonds
Party Aims to Ease Financial Burden for Young Tenants
National, a political party in New Zealand, has put forth a “common sense change” proposal that would enable individuals under the age of 30 to tap into their KiwiSaver accounts to assist with payment of rental bond obligations. Under this initiative, those with savings in their KiwiSaver accounts would have the option to utilize those funds for the purpose of fulfilling rental bond requirements.
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Simplified Process for KiwiSaver-Based Bond Payments
According to the proposal, the funds would be transferred from the individual’s KiwiSaver account to Tenancy Services and would be returned to the KiwiSaver account upon the conclusion of the tenancy. Chris Bishop, National’s housing spokesperson, unveiled the plan during an announcement at Auckland University, coinciding with the commencement of the second semester for tertiary students. He emphasized that if National were elected in October, they would actively pursue this legislative change exclusively for individuals under the age of 30.
A Solution for Financial Strain on Younger Tenants
Bishop acknowledged the challenges faced by many individuals, especially students and recent graduates, in accumulating the upfront payment of up to four weeks’ rent for a tenancy agreement. He asserted that this practical alteration would facilitate easier bond payment, subsequently freeing up cash for young people. Moreover, Bishop clarified that the utilization of KiwiSaver savings for rent bonds would be restricted to those under the age of 30 and limited to a five-year period encompassing five years’ worth of bond payments. This approach aims to encourage early participation in KiwiSaver and long-term engagement with the program.
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Addressing the Needs of Young Tenants
Bishop highlighted that this policy was conceived based on feedback from young individuals expressing their desire to leverage their KiwiSaver savings for bond payments. The proposal, he believes, will make a significant impact. It’s important to note that tenants will still have the option to transfer their bond to a new tenancy, just as they currently do.
Party Leader’s Endorsement and Implementation Plans
Party leader Christopher Luxon expressed his support for the policy, stating that it originated from National’s youth wing and aims to facilitate young people’s access to housing while pursuing education and entering the workforce. Bishop affirmed that a future National government would amend the KiwiSaver Act to enact this change and would coordinate any necessary operational adjustments between Tenancy Services and KiwiSaver providers to streamline the process.
