New Zealand Legislation: Acts
Acts are laws made by Parliament
(1) The Governor-General may, by Order in Council made on the recommendation of the Minister of Finance, make regulations providing for mortgage diversion facilities that allow contributions in respect of a person to be withdrawn from the person’s KiwiSaver scheme and complying superannuation funds to pay amounts secured by certain mortgages relating to that person.
(2) The Minister of Finance may make a recommendation under subsection (1) only if the Minister is satisfied that any mortgage diversion facility provided for in regulations will be consistent with the following principles:
(a) there is no compulsion on providers to provide a mortgage diversion facility:
(b) there is no compulsion on mortgagees to allow amounts secured by mortgages to be paid via KiwiSaver and complying superannuation fund contributions:
(c) the mortgage diversion facility is available in relation to a person at any time after 12 months have expired since the earlier of—
(i) the date that the Commissioner received the first contribution in respect of the person; or
(ii) the date that the relevant KiwiSaver scheme provider or complying superannuation fund provider received the first contribution in respect of that person’s membership to the relevant scheme or fund:
(d) the mortgage diversion is available only in relation to a mortgage over the person’s principal residence (for example, the family home):
(e) the mortgage diversion may apply for the remainder of the term of the mortgage after the diversion is made available, but only to the extent to which the mortgage continues to be over the person’s principal residence:
(f) after the total amount secured by the mortgage is paid, ongoing contributions are not diverted from the person’s KiwiSaver scheme and complying superannuation funds:
(g) if the person chooses to cease the mortgage diversion facility before the amounts secured by the mortgage are fully paid, the contributions are redirected towards retirement savings:
(h) the provider, and not the Commissioner, is responsible for paying the amount diverted under the mortgage diversion facility:
(i) the amount diverted from a person’s KiwiSaver scheme and complying superannuation funds is capped at not more than the total of—
(i) half of the total contributions deducted for or contributed by the person, received by their KiwiSaver scheme provider; and
(ii) half of the person’s contributions to their complying superannuation funds, but limited to 4% of their annual gross base salary or wages for each complying superannuation fund:
(ia) an amount may not be diverted if it was received by the relevant provider before the provider has received from the person a request to divert amounts under the mortgage diversion facility:
(j) employer contributions may not be diverted:
(k) the facility is available for new mortgages and existing mortgages.
(3) The regulations may specify all or any of the terms and conditions that apply to the mortgage diversion facility, including—
(a) which types of mortgages qualify for participation in the diversion facility; and
(b) what a scheme must do to participate in the mortgage diversion facility (for example, in relation to notification); and
(c) how the regulations affect the trust deed (for example, whether all or any of the terms and conditions in the regulations are implied terms of the trust deed); and
(d) what happens if the scheme decides to terminate participation in the mortgage diversion facility; and
(e) whether payment via the mortgage diversion facility counts as payment by the mortgagor for the purpose of the terms of the mortgage; and
(eb) closing the mortgage diversion facility to new participants by specifying a date before which a member of a KiwiSaver scheme or complying superannuation fund must request his or her mortgagee to participate in the facility in respect of the member's mortgage; and
(f) any other matters.
(4) If a provider chooses to participate in the mortgage diversion facility, any withdrawal made in accordance with those regulations must be treated as if it were a withdrawal that is permitted under the KiwiSaver scheme rules.
Section 229(1): amended, on 19 December 2007, by section 99(1) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 229(2): amended, on 19 December 2007, by section 99(2) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 229(2)(b): amended, on 19 December 2007, by section 99(3) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 229(2)(c)(ii): substituted, on 19 December 2007, by section 99(4) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 229(2)(e): amended, on 19 December 2007, by section 99(5) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 229(3)(eb): inserted, on 1 June 2009, by section 5 of the Taxation (Budget Tax Measures) Act 2009 (2009 No 14).
Section 229(2)(f): amended, on 19 December 2007, by section 99(6) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 229(2)(i): substituted, on 19 December 2007, by section 99(7) of the Taxation (KiwiSaver) Act 2007 (2007 No 110).
Section 229(2)(i): amended (with effect on 1 July 2008), on 6 October 2009, by section 732(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section 229(2)(ia): inserted (with effect on 1 July 2008), on 6 October 2009, by section 732(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).