Hon Todd McClay, in Committee, to move the following amendments:
Clause 2
Replace clause 2(3) with:
New clause 5BA
After clause 5 (after line 28 on page 2), insert:
5BA Section 228 amended (Regulations)
Replace section 228(1)(l) with:
Clause 5B
In clause 5B, new section 239(a) (line 9 on page 3), replace “section 6”
with “sections 6 and 6B”
.
In clause 5B, new section 239(a) (line 13 on page 3), replace “from 1 April 2015”
with “on and after 1 April 2015”
.
In clause 5B, new section 239(b) (lines 14 to 21 on page 3), replace “1 April 2015”
with “1 June 2015”
in each place where it appears.
Clause 6
Replace clause 6 (lines 25 to 30 on page 3) with:
6 Schedule 1 amended (KiwiSaver scheme rules)
(1) After schedule 1, clause 8(1)(a), insert:
(2) In schedule 1, clause 8(3), replace “for the purchase of an estate in land”
with “for the purchase of an estate in land located in New Zealand”
.
(3) After schedule 1, clause 8(3), insert:
(4) Replace schedule 1, clause 8(4)(a) with:
(5) In schedule 1, clause 8(5), replace “subclause (3)(b)(ii)”
with “subclauses (3)(b)(ii) and (3B)(b)(ii)”
.
(6) After schedule 1, clause 8(5)(ab), insert:
(7) Replace schedule 1, clause 8(6) and (7) with:
“(6) In this clause,––
“dwellinghouse means a building that is intended to have as its principal use occupation as a private residence
“estate means a fee simple estate, a leasehold estate, or a stratum estate
“Maori land has the same meaning as in the Te Ture Whenua Maori Act 1993.
(8) In schedule 1, clause 14(1), replace “Subject to clause 14B”
with “Unless clause 14B applies”
.
(9) In schedule 1, clause 14(2), replace “Subject to clause 14B”
with “Unless clause 14B applies”
.
(10) Replace schedule 1, clause 14B(1) with:
6B Schedule 1 amended (KiwiSaver scheme rules)
Replace schedule 1, clause 8(7)(c), as inserted by section 6(7), with:
Clause 10
Replace clause 10 (line 34 on page 4 to line 13 on page 5) with:
10 Section MA 7 amended (Meaning of full-time earner for family scheme)
Replace section MA 7(3), other than the heading, with:
Explanatory note
This Supplementary Order Paper proposes amendments to the Taxation (KiwiSaver HomeStart and Remedial Matters) Bill (the Bill). The amendments are focused on the KiwiSaver scheme rules relating to members’ withdrawals. Currently, it is proposed in clause 6 of the Bill to allow a first home withdrawal to include all Crown contributions already paid, other than the initial kick-start payment. The proposed new amendments to clause 6 of the Bill in this Supplementary Order Paper—
ensure that membership in a complying superannuation fund for 3 years may count towards qualifying for a first home withdrawal:
ensure that a first home withdrawal can only be used for New Zealand homes:
allow a first home withdrawal in relation to a dwellinghouse on Maori land that is intended to have as its principal use occupation as a private residence, if evidence of the right to occupy Maori land is provided:
allow a first home withdrawal to be used to make payments, including deposit payments, before the agreement for sale and purchase is unconditional, provided the savings can be returned to the member’s KiwiSaver account if the agreement fails to settle:
ensure that existing interests in Maori land do not preclude access to a first home withdrawal:
clarify, as a drafting matter, that an Australian emigration withdrawal overrides a general emigration withdrawal, but does not override all other withdrawals.
An ordering rule is also proposed for first home withdrawals, to ensure that Crown contributions are paid out last from a member’s account. Members withdraw their own contributions and their employer contributions first.
Proposed new clause 5BA updates 2 cross-references in a regulation-making power, consequential to the proposed new amendments to clause 6.
Also, clause 10 of the Bill is replaced to correct a fault of expression / cross-reference in proposed new section MA 7(3) of the Income Tax Act 2007.
Departmental disclosure statement
The Ministry of Business, Innovation and Employment is required to prepare a disclosure statement to assist with the scrutiny of this Supplementary Order Paper. It provides access to information about any material policy changes to the Bill and identifies any new significant or unusual legislative features of the Bill as amended.
A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=sop&subtype=government&year=2015&no=60& 
Regulatory impact statement
The Ministry of Business, Innovation and Employment produced regulatory impact statements on 25 November 2014 and 3 March 2015 to help inform the new policy decisions taken by the Government relating to the contents of this SOP.
A copy of these regulatory impact statements can be found at—