Finance Minister Nicola Willis and Commerce and Consumer Affairs Minister Scott Simpson said the amendments are designed to remove unfair barriers that have kept farmers, rural teachers, police, defence personnel and other service tenancy workers out of the property market. The existing requirement for applicants to intend to live in the property they buy will be modified for service tenancy holders, who will instead provide employer evidence of their housing arrangement.

In a significant change for agricultural producers, the new rules will let first-time farm buyers use KiwiSaver to help purchase farmland through commercial entities — such as companies, trusts or partnerships — if they will live on the farm and hold majority ownership and control. The definition of “farmland” aligns with the Overseas Investment Act, excluding forestry plantations but allowing mixed-use farming operations under the withdrawal rules.

Ministers stressed that the changes maintain KiwiSaver’s core purpose — supporting first-home ownership — while making it fairer for rural communities and the farming sector. The reforms reflect the commercial reality that most farms are not owned directly in individual names but through structures aimed at tax efficiency and generational succession. A Government bill giving effect to the changes will be introduced to Parliament in mid-2026.