The Government has abandoned its 2023 election policy that would have allowed New Zealanders under 30 to use KiwiSaver funds to pay rental bonds.
Housing Minister Chris Bishop confirmed the policy had been shelved at a post-Cabinet media conference on 29 June, saying initial advice showed the proposal was far more complex than anticipated.
"We have not made any progress on that. I took some initial oral advice from memory, and the short answer is: It's way more complicated than we thought it would be. So we're not intending to progress it," Bishop said. He characterised the policy as falling into the "nice idea, but too difficult basket".
The policy was announced by Bishop and Christopher Luxon during the 2023 election campaign. Under the proposal, funds would have been transferred from KiwiSaver accounts to Tenancy Services and returned at the end of a tenancy. Eligibility was to be restricted to New Zealanders under 30, with a cap of five years' bond payments.
When the policy was first unveiled in 2023, Bishop noted the difficulty many faced in raising up to four weeks' rent upfront, particularly students and recent graduates entering the workforce.