KiwiSaver Withdrawal for the purpose of purchasing a First (or second-chance) Home and the KiwiSaver First (or second-chance) Home Deposit Subsidy
There are two parts to the KiwiSaver first (or second chance) home assistance programme:
1. KiwiSaver withdrawal for purpose of purchase of first or second chance home
Further information is provided below
2. KiwiSaver first or second chance home deposit subsidy
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A ‘deposit subsidy’ paid by the Crown in certain circumstances.
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This component is administrated by Housing New Zealand Corporation (HNZC). KiwiSaver providers may need to provide their members with records of their annual KiwiSaver contributions to support an application to HNZC.
Further information is provided below:
(Please note: the Mortgage Diversion facility was closed to new participants by legislation from 1 June 2009). Ref: Taxation (Budget Tax Measures) Act 2009
For comprehensive information on the KiwiSaver First Home Withdrawal and the KiwiSaver First Home Deposit Subsidy visit: http://www.hnzc.co.nz/kiwisaver
References
First home withdrawal is provided for in:
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KiwiSaver Act 2006 - Schedule 1 clause 8; and
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KiwiSaver Regulations 2006 - Regulations 30-31: added on 19 December 2007, by section 118 of the Taxation (KiwiSaver) Act 2007.
The Income Tax (Social Assistance Suspensory Loans) Amendment Order 2010 confirms the deposit subsidy is tax free.
The Government has also agreed the following rules for the first home deposit subsidy:
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contributions made by KiwiSaver members prior to turning 18 years of age will count towards eligibility for the deposit subsidy if they meet minimum contribution requirements. However, applicants must be aged 18 years or over to meet standard lending criteria;
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contributions made to an Australian superannuation scheme and then transferred to KiwiSaver will not count towards eligibility for the deposit subsidy;
- applicants must be resident in New Zealand to be eligible for the deposit subsidy to align to the residency requirements in the KiwiSaver Act 2006.