National abandons 2023 campaign policy to allow KiwiSaver for rental bonds

National has abandoned a 2023 campaign policy to allow renters to use their KiwiSaver for rental bonds, admitting the policy was more complicated than first thought.

At the last election, National campaigned on allowing people under 30 to use their KiwiSaver to pay for a tenancy agreement bond.

The money would be transferred directly from a renter's KiwiSaver to Tenancy Services, and returned to their savings when the tenancy ended.

At the time, National said it was part of the party's ambition for young people to join KiwiSaver and be in the scheme for the long haul.

But fast forward to 2026 and the policy has not been implemented, and on Monday Housing Minister Chris Bishop confirmed it would not be looked at again.

"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 that," he said.

"It's one of those things that you put in the 'it's a nice idea, but too difficult' basket."

Standing next to him, prime minister Christopher Luxon pointed out the government had opened up KiwiSaver for another group of people.

"The good news is, we've done KiwiSaver for farmers. So that's great."

In March, Finance Minister Nicola Willis announced the government would change KiwiSaver laws so first-time farm buyers and other workers with live-in job residences (such as rural teachers, country police officers, and defence personnel) could use their KiwiSaver accounts to purchase their first home.

National will instead campaign on making KiwiSaver compulsory, as well as raising the default contribution to 6 percent, automatically enrolling babies, paying a government contribution to those on parental leave, and making employer contributions for those over the age of 65 compulsory.