Big KiwiSaver Changes Are Coming — Here's What First Home Buyers Need to Know

Change #1: Contributions Are Going Up

This is the big one that affects everyone. The default KiwiSaver contribution rate — what you and your employer both put in — is rising for the first time in years.

In real terms, on a $70,000 salary that's roughly an extra $700 per year flowing into your KiwiSaver account — $350 from you and $350 from your employer. The more you earn, the bigger that boost. Over several years, that compounds significantly.

Not in a position to absorb the higher deduction right now? You can apply for a temporary rate reduction to stay at 3% for between 3 and 12 months. Just know it's a short-term pause, not a permanent opt-out.

Not sure if your contribution rate is working hard enough for you? Get your free KiwiSaver check-up →

Change #2: Younger Kiwis Can Build Sooner

If you are 16 or 17 and working, this is a meaningful shift. 16 and 17-year-olds can qualify for government contributions from 1 July 2025 and employer contributions from 1 April 2026, as long as they meet the other KiwiSaver eligibility requirements.

That means a teenager in their first part-time job can now get the full trio of contributions: their own, their employer's, and the government's. Starting earlier means a bigger pot by the time homeownership becomes a real goal.

Change #3: The Government Contribution Has Changed

The government still adds to your KiwiSaver each year, but the amount has reduced. From 1 July 2025, eligible KiwiSaver members receive 25 cents for every $1 they contribute, up to a maximum annual government contribution of $260.72. To get the full amount, you need to contribute at least $1,042.86 of your own money between 1 July and 30 June each year. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86. People earning over $180,000 taxable income a year do not qualify, and employer contributions, past government contributions, and Australian retirement transfers do not count toward the $1,042.86.

It is a smaller boost than before, but it may still be useful if you are eligible. Check the contribution threshold, income limit, and what counts as your own contribution before relying on the full amount.

Want to check how the government contribution rules apply to you? Get your free KiwiSaver check-up →

Change #4: Proposed Rural and Service-Tenancy Access Changes

This proposed change matters for some workers whose jobs require them to live in employer-provided housing. Current first-home withdrawal rules still need to be checked carefully until the law is enacted and commenced.

What Stays the Same

Amid all the changes, the core KiwiSaver first home withdrawal rules remain unchanged. You still need to have been a KiwiSaver member for at least three years. You can still withdraw almost everything in your account — all but $1,000 must remain. And the property you are buying still needs to be in New Zealand and be your principal place of residence, unless a specific enacted exception applies.

The First Home Loan through Kāinga Ora is also still available for eligible buyers through selected lenders, with as little as a 5% deposit. A KiwiSaver first-home withdrawal may form part of that deposit if the buyer meets the withdrawal rules.

What Should You Do Right Now?

• Check your contribution rate. If you are on the 3% minimum/default rate, you generally move to 3.5% from 1 April 2026. If your budget allows, the higher rate may increase the amount going into KiwiSaver.
• Check whether you are eligible for the full government contribution. You need to contribute at least $1,042.86 of your own money between July and June to get the maximum $260.72 government contribution, and the income and contribution-source rules matter.
• Calculate what you'll have at the time of purchase. If you're within a few years of buying, work out your projected balance and factor in the higher contributions.
• If you're a rural or service tenancy worker, the amendment bill expected mid-2026 may open up access you didn't have before. It still needs to pass into law — watch for the official announcement and talk to an adviser.

KiwiSaver can be an important part of a first-home deposit plan, but contribution choices, timing, and withdrawal rules are personal. Check the current rules and get advice if you are unsure.

Ready to see how your KiwiSaver stacks up? Get your free KiwiSaver check-up →