A number of changes to the eligibility criteria for the KiwiSaver HomeStart Grant took effect on 1 August 2016. The key changes are:
House price caps
The existing house price caps will be increased by $50,000 to the new levels of $400,000, $500,000 and $600,000. (See fact sheet for details) These house price caps are to be used exclusively for existing/older properties.
Additionally a new house price cap has been added. These caps will be set at $450,000, $550,000 and $650,000 and are for new properties such as off the plan purchases, house and land packages, the purchase of land on which a new property will be built or a newly built property where the code compliance certificate has been issued within the last six months. (See table below for details)
The existing income cap limits of $80,000 for one buyer and $120,000 for two or more buyers are to be increased to $85,000 and $130,000 (before tax) respectively. These caps are based on income earned in the previous 12 month period.
Previous home owners
For the assessment of previous home owners, the realisable assets test will be based on the house price cap for existing/older properties, not the new property caps.