Tertiary students will be able to dip into their KiwiSavers to pay for tenancy bonds under the National Party’s newest policy announced today to “free up cash for young people”.

Leader Christopher Luxon announced the policy during orientation week at the University of Auckland along with the party’s spokesman on housing, Chris Bishop.

The party’s youth wing, the Young Nats, suggested the policy, Luxon said.

Students aged under 30 would be eligible to use money from their KiwiSaver for up to five years.

 “This reflects the fact that we want young people joining KiwiSaver early and staying in for the long haul,” Bishop said.

Bishop said National had spoken to KiwiSaver providers about the policy and the “back end” of schemes would need to be configured to make the policy possible.

The policy would mean a law change to the KiwiSaver Act to make make the necessary operational changes.

Bishop said students will be able to transfer bond payments from their KiwiSaver accounts directly to Tenancy Services. It will be returned once the tenancy ends.

National Party leader Christopher Luxon meeting students at the University of Auckland. Photo / Dean Purcell

“This is a commonsense change that will make it easier for people to pay for bonds, and free up cash for young people,” Bishop said.

“Getting together up to four weeks’ rent in advance for a tenancy agreement is not easy for many people, particularly for students and young graduates, who don’t have a lot of cash,” he said.

“Young people have told me they’d like to have the option of using their KiwiSaver savings to sort their bond payments, and that this policy will make a difference.”

Tertiary students will be able to dip into their KiwiSavers to pay for tenancy bonds as per the National Party’s newest policy announced today to “free up cash for young people”. Photo / Dean Purcell

It comes after National yesterday pledged to pour $500 million over three years into a Pothole Repair Fund to address what it calls the “shocking state of our local roads and state highways”.

The Green Party, meanwhile, has vowed to make sure all stolen land is returned to tangata whenua by introducing legislation including removing a historical claims deadline for breaches of Te Tiriti o Waitangi and establishing a process for private land.

Prime Minister Chris Hipkins unveiled Labour’s “rallying cry” for its re-election campaign with a new slogan, “In It For You”, alongside a billboard and social media campaign yesterday.

Raphael Franks is an Auckland-based reporter who covers breaking news. He joined the Herald as a Te Rito cadet in 2022.