The Government has announced important KiwiSaver rule changes that, if enacted, will make it easier for:
- First-time farm buyers
- Farm workers living in employer-provided housing
- Rural teachers, police, defence and other service tenancy workers
to use their KiwiSaver savings to buy their first home.
If you live and work in rural New Zealand, this could be a significant opportunity.
What is changing with KiwiSaver first-home withdrawals?
For more than a decade, Kiwis have been able to withdraw their KiwiSaver savings to help buy their first home – as long as they intended to live in the property.
But this created two major barriers for rural communities.
- Service tenancy workers couldn’t meet the “live-in” rule
Many rural workers are required to live in housing provided by their employer. This includes:
- Farm workers
- Rural teachers
- Country police officers
- Defence personnel
- Some health workers
Because they must live where they work, they technically couldn’t meet the rule requiring them to live in the home they purchased.
That meant many people were unable to access their KiwiSaver savings, even if they had saved enough for a deposit.
What will change?
The Government plans to remove the requirement for service tenancy workers to live in the home they purchase while their employment requires them to live elsewhere.
This means eligible workers will now be able to:
- Withdraw KiwiSaver funds for a first home
- Purchase a property without immediately living in it
- Start building long-term security while continuing in their current role
This is a targeted change aimed at making KiwiSaver fairer for rural New Zealand.
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KiwiSaver and buying your first farm
There is also an important change for first-time farm buyers.
Under current rules, you can withdraw KiwiSaver savings to buy a farm – but only if it is purchased in your own name and you intend to live on it.
In reality, most farms are purchased through:
- Companies
- Trusts
- Partnerships
This commercial structure has prevented many aspiring farmers from accessing their KiwiSaver savings in the same way as someone buying a house in town.
What will change?
The new rules will allow first-time buyers to:
- Use KiwiSaver savings to help purchase a farm
- Buy through a company or trust
- Majority own and control the entity
- Live on the farm as their principal place of residence
Forestry plantations will remain excluded, but mixed-use farming models will be allowed, aligned with the Overseas Investment Act definition of farmland.
This reflects the commercial reality of modern farm ownership.
These reforms aim to:
- Remove unnecessary barriers
- Support first-home ownership in rural areas
- Encourage higher KiwiSaver contributions from younger farm workers
- Recognise that rural employment structures are different from urban ones
For some young farm workers, the previous rules reduced the incentive to contribute more than the minimum, because accessing funds before age 65 felt impossible.
This change may help shift that mindset.
How to prepare if you're planning to use KiwiSaver to buy a farm or first home
If you are a farm worker, rural employee or aspiring farm owner, now is a good time to get organised — and to get advice.
At Generate, our KiwiSaver advice is no cost and no obligation. Our advisers are based across the country and regularly work with people in rural communities who want practical, straightforward guidance.
Here’s where to start:
1. Review your KiwiSaver balance
Do you know exactly how much you’ve saved?
Understanding your current balance — and how much may be available for a first-home withdrawal — is the first step in planning your deposit. A Generate KiwiSaver adviser can walk you through this and help you understand what it could mean in real terms.
2. Check your contribution rate
Are you contributing 3.5%, 4%, 6%, 8% or 10% of your income? (Click here to see recent rate-change updates.)
A higher contribution rate could help you reach your deposit goal sooner — especially if you’re a few years away from buying. We can model different scenarios and show you how changing your contribution rate may impact your savings.
3. Make sure you’re in the right KiwiSaver fund type
Your fund type matters.
If you’re planning to buy in the next few years, being in the wrong type of fund could either slow your growth – or expose you to unnecessary volatility close to purchase time.
A Generate KiwiSaver adviser can review your current fund and check whether it aligns with your timeframe and risk comfort level.
4. Get advice early – especially if buying a farm
- Farm purchases often involve:
- Companies or trusts
- Majority ownership requirements
- Principal place of residence rules
- Additional complexity compared to residential property
The earlier you get advice, the more confidently you can plan. Even if legislation is still progressing, you can prepare now.
Talk to a Generate adviser today
If these KiwiSaver changes could apply to you, now is the right time to have a conversation.
Generate offers no-cost KiwiSaver advice with no obligation to switch or join.
How Generate can help
At Generate, we understand that rural employment and farm ownership work differently from urban property purchases – and your KiwiSaver plan needs to reflect that.
Our advisers are based across New Zealand and can meet face-to-face or over video call, making it easy to get support wherever you are.
We can help you:
- Understand how the new KiwiSaver rules may apply to your situation
- Confirm whether you qualify for a first-home withdrawal
- Review your KiwiSaver balance and contribution rate
- Make sure you’re in the right fund for your timeframe
- Plan your KiwiSaver deposit strategy
Whether you're ready to buy or simply planning ahead, early advice can give you clarity and confidence.
Generate offers no-cost, no-obligation KiwiSaver advice, so you can explore your options and make informed decisions about your future.
Book a KiwiSaver review with a Generate adviser today.
In addition to KiwiSaver, Generate also offers Managed Funds and Private Wealth solutions, which may suit those building long-term wealth beyond their first property purchase.
When will the changes take effect?
Legislation is expected to be introduced to Parliament mid-2026. We’ll continue to monitor developments and provide updates as details are confirmed.
If you’d like to discuss what this could mean for you, speak to a Generate adviser today.