12 August 2013

Kiwisaver Not the Way to Go For Home Ownership

UnitedFuture leader Peter Dunne does not support the National Party’s proposal to extend the home ownership provisions of Kiwisaver, saying that it weakens the focus of the retirement saving scheme.

“Kiwisaver was established to boost New Zealanders’ retirement savings, given our notoriously bad track record in that regard.

“Weakening by it extending home ownership provision detracts from its original aim, and the establishes the precedent that other items can be added to what Kiwisaver can be used, thus weakening further New Zealander’s long term savings base.

“When I was Minister of Revenue I resisted several approaches from those wanting to use Kiwisaver funds for student loan repayments, for example, for that very reason – Kiwisaver is not a political slush fund for governments to dip to fund attractive policies,” he says.

Mr Dunne says a better way to increase eligibility for first home ownership would be to allow young families to capitalise Working for Families tax credits towards a deposit, which was UnitedFuture’s policy.

“This way, a young family can utilise tax credits available to boost their chances of getting into their own home, without compromising their ability to save through for their retirement through Kiwisaver,” he says.

UnitedFuture’s housing policy can be viewed at www.unitedfuture.org.nz/housing  

ENDS

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