First Home Withdrawals

Withdrawing your KiwiSaver when you purchase your first home

After you have been a member of KiwiSaver for three years, you may be able to withdraw your KiwiSaver balance (less $1,000 and any Australian Superannuation transfers), ($1,000 must remain in your account), towards the purchase of your first home.  These funds are paid to your lawyer towards the house purchase price, and can be to purchase and existing house, or land to build a house on that you are going to live in.

You may also be eligible for a first home grant.  

This will depend on a number of factors including:
1. How long you have been contributing to KiwiSaver (of at least the minimum allowable percentage of your total income).  If you are a non-earner, there are specific rules about hoe much you must contribute, based on the minimum adult wage for a 40 hour week.
2. What your income is when you purchase your first home
3. What the value of your house is (this depends on the location of the house you are purchasing.)
4. You have to be aged 18 or over.
This grant provides $1,000 a year for each year that an eligible person has been a contributing member of KiwiSaver, to a maximum of $5,000.  From 1st April 2015 these subsidies will double to $2,000 a year with a maximum of $10,000 if you are building a first home.
Some previous house buyers may also be eligible to withdraw their funds and for the first home grant.  Housing New Zealand determine the eligibility of previous home owners for both the grant and whether they can withdraw their KiwiSaver funds.  In addition to the above criteria,  a previous house owner cannot have realisable assets totalling more than 20% of the house price cap for the area that they are buying in.
You may also be able to use a Welcome Home Loan to assist you with purchasing your home.
For more information, make sure you are familiar with the rules, which are outlined at Housing New Zealand.  Click here to go to the Housing New Zealand page.

Coronavirus world, economic outlook and investments

This is a newsletter that was sent out on Monday May 11th 2020, to Moneyworks Financial Planning and Investment Clients that we work with on an ongoing basis.  It has quite a lot of interestingRead more

FIF/FDR Tax Regime on Overseas Investments

If you are liable to this tax regime (Your adviser will have told you, and your tax report will have a section with calculations on it as shown below), it is IMPORTANT that you read this guidance.Read more

PIE Tax

Your KiwiSaver and some other investments may be liable to PIE Tax. A PIE is a Portfolio Investment Entity. PIE Tax calculations are quite complicated – the important thing that you need to know isRead more

Tax Adjustments/Package available for indviduals and businesses under the Covid-19 Crisis Environment

The NZ Government has been using the tax system to provide assistance to people and businesses to deal with the Covid-19 Lockdown.  We have outlined the benefits announced to date below. There is aRead more

Questions about your KiwiSaver and Insurance under the Covid-19 environment?

Insurance policies All of the insurers that we work with and that our clients have insurance in place with (Life, Trauma, Income Protection/Mortgage Repayment and Health/Medical insurance) haveRead more

It is time in the market - NOT timing the market - the role of Finology in investing

It is tempting to stop making regular investments into markets when there is volatility and you hear the media pronouncing that the markets have 'crashed', 'plummeted', 'plunged', or even when theyRead more

Investment Markets and Recent Fluctuations

You will have heard comments in the media recently that the stock-markets have ‘had their worst day since the Global Financial Crisis in 2008’.  You may have noticed that your KiwiSaver andRead more

Warning to DIY investors investing in foreign investments

New Zealand is a nation of Do It Yourselfers.  From the queues at Mitre 10 and Bunnings, to people managing their own investments because they can do it better than a professional. Although we DIY Read more

Fast fashion and the impact on the environment

As our society becomes more socially aware, it is becoming clear that 'fast fashion' is a major contributor to not only landfill, but also as an intensive user of resources. As many of you will recaRead more

Building or Renovation insurance - who is responsible?

Is it you or is it me? Who covers what when it comes to renovating or building? Is it the Owner or the Builder? This is a question that is often raised late in the piece when considering buildingRead more

Airbnb Tax Crackdown

The shared use economy has seen a plethora of homes turned into Airbnb’s and of vehicles turned into ‘uber’ taxis.  While this has changed the way that many people travel, a number of the owneRead more

Dart Throwing Monkeys - can they do better than active investment managers?

In December 2019, Kiwi Wealth released a research report analyzing the actual returns of tracking ‘passive’ investment funds, versus random ‘dart throwing monkeys’ versus ‘active’Read more
 

This product has been added to your cart

CHECKOUT