In Confidence OFFICE OF THE MINISTER OF COMMERCE AND CONSUMER AFFAIRS The Chair Cabinet Economic Growth and Infrastructure Committee Opportunity to Clarify KiwiSaver First Home Withdrawal Provisions Proposal 1 This paper seeks Cabinet s agreement to amend the KiwiSaver Act 2006 (the KiwiSaver Act) to clarify the KiwiSaver first home withdrawal and trans-tasman portability rules, to improve certainty and consistency and ensure that the early withdrawal rules are achieving their objectives. Executive Summary 2 The primary objective of the KiwiSaver Act is to improve an individual s well-being in retirement by encouraging a long term savings habit and asset accumulation. KiwiSaver funds are generally locked in until the age of 65. However, the Act allows members to make an early withdrawal for the purchase of a first home, recognising that individuals who own their own home are likely to achieve a higher standard of living in retirement. 3 The KiwiSaver Act contains rules to determine eligibility for a first home withdrawal. In August 2014, as part of the HomeStart package, the Government announced that KiwiSaver members will be able to withdraw member tax credits as part of the first home withdrawal (previously this could not be withdrawn). The necessary changes to the KiwiSaver Act are to be enacted by 1 April 2015 [CAB Min (14) 28/9 refers]. 4 It is now the fourth year since KiwiSaver members have been able to make a first home withdrawal (a minimum of three years membership is required) and concerns around inconsistent decisions and unintended consequences are emerging due to a lack of clarity in the rules. I am seeking Cabinet approval to clarify that: a. The first home withdrawal is not available for the purchase of a first home outside New Zealand. The rules are currently silent on where a home is located, resulting in confusion, inconsistent decisions, and negative publicity. b. The first home withdrawal provisions are available for home ownership on Māori land. The rules appear to preclude this, which is likely to be an unintended consequence in the drafting of the rules and is contrary to the Government s Māori home ownership and land use goals. c. The trans-tasman savings portability arrangements are only an exception to the ability to withdraw funds upon permanent emigration and are not an exception to the other KiwiSaver early withdrawal provisions. The rules currently imply that a KiwiSaver member who has permanently migrated to Australia cannot make any KiwiSaver withdrawal (e.g. withdrawal on death or withdrawal in the case of serious illness), which appears to be a drafting error.
2 d. Membership in a complying superannuation fund counts towards the three year membership requirement for a first home withdrawal. The rules currently imply that, if a complying superannuation fund member transfers to KiwiSaver, their membership in the complying superannuation fund does not count towards the three year membership requirement. This is contrary to the treatment of complying superannuation funds in the KiwiSaver Act. 5 I expect that a decision to prevent the first home withdrawal being used for a home overseas will be controversial, with public opinion on this issue divided. It is nonetheless crucial to clarify this rule in order to ensure consistent application of the first home withdrawal provisions by providers. The other changes are not expected to be controversial. Clarification that the first home withdrawal is available for the purchase of a home on Māori land is expected to result in positive publicity and provide an opportunity to demonstrate a cohesive strategy to support Māori home ownership. 6 It is timely to clarify these provisions because: a. The first home withdrawal is increasing in profile and importance as KiwiSaver balances grow. In the year to June 2013, 10,733 members withdrew $120.2 million for first home withdrawals. In the year to June 2014, 13,821 members withdrew $168.7 million. b. Clarification on whether the withdrawal can be used for a home overseas is needed alongside the HomeStart member tax credit change to avoid creating a potential loophole for permanent emigrants. Permanent emigrants who close their KiwiSaver accounts are not entitled to withdraw their member tax credits (member tax credits are returned to the Crown). The HomeStart change could create a loophole by allowing members who have permanently emigrated to access their member tax credits via the first home withdrawal. 7 I therefore propose that the clarifications in this Cabinet paper be made as part of the Taxation (KiwiSaver HomeStart and Remedial Matters) Bill. The Bill is expected to be introduced to the House and referred to Select Committee in early December 2014 and enacted by 1 April 2015. The Ministry of Business, Innovation & Employment (MBIE) is exploring options with Inland Revenue to include the proposed clarifications in the Bill. 8 While the proposed amendments are clarifications, I am seeking Cabinet decisions because for some issues, such as purchasing a first home overseas, the original policy intent is unclear. Moreover, the clarification around Māori interests in land will widen the scope of the eligibility criteria in practice (since these applications are currently being declined). Background The KiwiSaver first home withdrawal rules 9 The primary objective of the KiwiSaver Act is to improve an individual s well-being in retirement by encouraging a long term savings habit and asset accumulation. KiwiSaver funds are generally locked-in until the age of 65. However, the KiwiSaver Act recognises that there are situations in which people should be able to access their KiwiSaver savings early. These situations include withdrawal for the purchase of a first home, recognising that individuals who own their own home are likely to achieve a higher standard of living in retirement. 10 Clause 8 of Schedule 1 of the KiwiSaver Act sets out eligibility criteria for a first home withdrawal. A KiwiSaver member can access KiwiSaver funds to purchase a first home if the member:
a. has been a KiwiSaver member for at least three years b. has not made a withdrawal from any KiwiSaver scheme to buy a home c. intends the property to be their principal place of residence 3 d. has never owned a property (this does not include previously holding an estate in land as a bare trustee or a leasehold estate), or can demonstrate that they are in the same financial situation as a first-home buyer (the second chance scheme). 11 If the eligibility criteria are satisfied, members can withdraw all, or part, of their savings, employer contributions and all investment returns towards the purchase of a first home. Members cannot currently withdraw the $1000 government kick-start or member tax credit. 12 The withdrawal must be for the purchase of an estate in land. Estate is defined in the rules as a fee simple estate, a leasehold estate or a stratum estate. 13 The first home withdrawal scheme is administered by the KiwiSaver providers, aside from the second chance scheme which is administered by Housing New Zealand Corporation (HNZC). HNZC also administers the KiwiSaver deposit subsidy and applies broadly the same eligibility criteria for both the second chance scheme and the deposit subsidy. HomeStart changes will allow KiwiSaver members to withdraw member tax credits 14 In August 2014, the Government announced the HomeStart package for first home buyers. The HomeStart package includes one change to the KiwiSaver first home withdrawal provisions: to allow larger KiwiSaver first home withdrawals by allowing withdrawal of the member tax credit (previously this could not be used as part of the first home withdrawal). 15 The change to allow withdrawal of member tax credits requires amendment to the KiwiSaver Scheme Rules in the KiwiSaver Act. Cabinet invited the Minister of Revenue to submit the amendment to the Act to the Cabinet Legislation Committee in time for the amendment to be enacted and in effect by 1 April 2015 [CAB Min (14) 28/9 refers]. There is a lack of clarity with other elements of the KiwiSaver Scheme Rules 16 It is now the fourth year since KiwiSaver members have been able to make a first home withdrawal (a minimum of three years membership is required) and concerns around inconsistent decisions and unintended consequences are emerging due to a lack of clarity in the rules. The areas of concern are as follows: a. It is currently unclear whether the first home withdrawal can be used to purchase a first home outside of New Zealand. b. The rules appear to preclude the use of the first home withdrawal for certain common forms of home ownership on Māori land 1. c. The trans-tasman savings portability arrangements are silent on the treatment of KiwiSaver funds that are not transferred to an Australian scheme. d. The rules are silent as to whether the years of membership in a complying superannuation fund, which is transferred to a KiwiSaver scheme, should count towards the three-year qualifying period for the first home withdrawal. 1 Māori land is defined by Te Ture Whenua Māori Act 1993 as Māori Customary Land (still held in customary title) and Māori Freehold (for which ownership has been determined and titles have issued).
4 17 These issues have been brought to MBIE s attention by KiwiSaver trustees and providers who are seeking clarity, by the Banking Ombudsman who was seeking guidance in order to resolve a dispute, through queries received by the Financial Markets Authority (FMA), through media articles, and directly through complaints by KiwiSaver members. 18 It is timely to clarify these provisions, recognising the increasing importance of the first home withdrawal provisions as KiwiSaver balances grow. The first year that members could utilise the first home withdrawal scheme was in 2010 (a minimum of three years membership is required). In the year to June 2013, 10,733 members withdrew $120.2 million for first home withdrawals. In the year to June 2014, 13,821 members withdrew $168.7 million. I anticipate that this rate will continue to grow as membership numbers and fund balances grow. Purchase of a first home outside of New Zealand 19 The first home withdrawal rules are currently silent as to where the house can be bought. The only New Zealand-based restriction is a requirement that the member s funds are paid to a practitioner who holds a New Zealand practicing certificate. 20 This issue was originally raised through a complaint to the Banking Ombudsman after a New Zealand couple moved to Australia and submitted first home withdrawal applications to their respective KiwiSaver providers. One provider agreed to the withdrawal while the other did not. This lack of clarity has since been the subject of several media articles. 21 MBIE surveyed KiwiSaver providers about their treatment of first home withdrawal applications for homes overseas. The responses confirmed that providers are interpreting the rules inconsistently, with some approving withdrawals for a first home overseas and others declining them 2. 22 Providers advised that the majority of applications are for a home in Australia, that applications are relatively rare (MBIE estimates that there are less than 40 applications per year for the purchase of a first home overseas), but that the rate of applications is increasing. This increase is likely the result of the trans-tasman savings portability rules, which came into effect in mid-2013, preventing permanent migrants to Australia being able to withdraw their KiwiSaver funds. 3 23 The provision needs to be clarified since the current inconsistent treatment risks harming the KiwiSaver brand. Moreover, the member tax credit changes increase the importance of clarifying this rule. If the member tax credit could be withdrawn for a home overseas, this would create a loophole for permanent migrants who would otherwise not be entitled to withdraw the member tax credit. 24 I recommend that the rule should be clarified to ensure that the first home withdrawal is only available for a first home in New Zealand. Limiting the first home withdrawal to purchases in New Zealand will minimise complexity and costs associated with monitoring transactions in overseas jurisdictions. It also minimises the risk of misuse of the early withdrawal since providers have familiarity with sale and purchase documents. 2 Of the 10 providers who responded to MBIE s request for information, three said that they would approve such applications, while four said that they would decline them. One provider said it would not approve for Australia, but would approve for the rest of the world. The remaining two providers had either never had an application or their policy was unclear. 3 A KiwiSaver member who has permanently migrated to a country other than Australia can withdraw their KiwiSaver funds (minus member tax credits) after one year.
5 25 Moreover, limiting the withdrawal for purchases in New Zealand will ensure greater consistency with the rules of the other KiwiSaver-based housing initiatives (that is, the KiwiSaver deposit subsidy and the second chance scheme which are administered by HNZC). Particularly as these initiatives are closely linked in KiwiSaver members minds, consistency is important to reduce confusion and complexity. Interests in Māori land 26 The rules for a first home withdrawal are silent in respect of interests in Māori land and common forms of home ownership on Māori land. Anecdotal evidence obtained from HNZC, MBIE s Chief Māori Housing Officer, and officials enquiries with KiwiSaver providers indicates that applications for first home withdrawals to purchase or build a home on Māori land are generally being declined: a. The most common reason cited is that the first home withdrawal must be for the purchase of an estate in land. This requirement appears to exclude people who have an interest in Māori land as they are not purchasing an estate in land. Rather, they want to use the first home withdrawal to purchase or build a house on land which usually remains with all of the owners as Māori land (as tenants in common). b. Applications have also been declined due to the tenancy in common status of Māori land. The rules state that a member with a previous interest in land, including any interest as a tenant in common, is not eligible for a first home withdrawal. A narrow interpretation of the rules automatically excludes Māori land owners due to their existing interest in that land, despite the fact that the interest is extremely small and cannot be economically realised. 27 This does not appear to align with the policy intent of the Kāinga Whenua funding programmes [CAB Min (13) 38/8 refers]. It also appears to be inconsistent with the Government s Māori home ownership and land use goals as set out in He Whare Āhuru He Oranga Tāngata the Māori Housing Strategy 4 and He Kai Kei Aku Ringa The Crown-Māori economic growth partnership. 5 28 Home ownership rates for Māori are still significantly lower than average. According to the 2013 Census 28.2 percent of Maori people aged 15 years and over own or partly own the home they live in, compared to the national average of 49.8 percent. 6 29 MBIE officials met with the Māori Land Court, Te Puni Kōkiri, and HNZC and have identified advantages in clarifying the rules with regards to Māori land, including: a. Providing an essential means of financing a purchase. Access to capital is the major hurdle in building or purchasing a home on Māori land due to the difficulties of taking security over multiply-owned land. In some cases access to KiwiSaver funds, including as their deposit, may be the members only mechanism to finance the purchase. 4 He Whare Āhuru provides an overview of government support for Māori people s aspirations to have reliable and appropriate housing and for Māori-led housing programmes. 5 He Kai Kei Aku Ringa presents a shared vision for Māori economic development, with one of its goals being that home ownership for Māori households equals national averages by 2040. 6 Data obtained from Statistics New Zealand http://www.stats.govt.nz/census/2013-census/profile-andsummary-reports/quickstats-about-housing/home-ownership-individuals.aspx.
6 b. Clarity that the first home withdrawal is available for homes on Māori land, and associated advice and education in this area, will provide an opportunity to facilitate uptake and increase home ownership rates amongst Māori. c. Wider security and inter-generational benefits. A house built or purchased on Māori land remains for future generations with additional benefits in terms of intergenerational security and connection with the land over the longer term. d. Facilitating the sale of HNZC stock. HNZC is in the process of selling down housing stock it owns on Māori land and reports that difficulty accessing first home withdrawals is a substantial issue for potential purchasers. e. Consistency with the approach taken by HNZC in administering the KiwiSaver deposit subsidy and the second chance scheme. These initiatives are closely linked in KiwiSaver members minds, and therefore consistency is important to reduce confusion and complexity. 30 In addition, the original policy intent of KiwiSaver explicitly referred to assisting households into home ownership, with a particular focus on low home ownership rates amongst Māori. The Cabinet Policy Committee Paper: 2005 Budget Savings Package: Home Ownership Assistance noted in particular that the Government believes that asset ownership is important to enable people to participate fully in society and that assets provide families with greater security, control, and independence. Moreover, the security of tenure associated with home ownership confers further benefits on households, in terms of their health and education outcomes, and social cohesion. 31 I recommend amending the KiwiSaver Act to clarify that: a. a first home withdrawal can be used in relation to the purchase of a house on Māori land, and b. an interest in Māori land that cannot be economically realised should be disregarded for the purposes of determining whether the member has previously held an estate in land. KiwiSaver withdrawal rules for permanent migrants to Australia 32 In mid-2013, the trans-tasman savings portability arrangements came into effect. Under the arrangements, a KiwiSaver member cannot withdraw their retirement savings in cash upon permanent migration to Australia, as can be done if a member migrates to a country other than Australia. Rather, the member may transfer their savings to an Australian complying superannuation scheme. Participation is voluntary for members (who can choose to keep their KiwiSaver accounts open if they wish) and providers (who are not obliged to accept KiwiSaver funds). 7 The purpose of the portability arrangements is to strengthen the policy intent of KiwiSaver. 33 There is a potential issue with the drafting of the trans-tasman portability rule in the KiwiSaver Act. The rule states a member may not withdraw any amount after the member s permanent emigration to Australia (emphasis added). This could be interpreted as preventing a KiwiSaver member who has permanently migrated to Australia from making a withdrawal in any of the other circumstances provided for in the KiwiSaver Act (e.g. withdrawal upon retirement or death, or withdrawal in the case of serious illness). 7 Whist the scheme allowing Australian Funds to accept the transfer from New Zealand has been live since 2013, until very recently it has not been possible to transfer because Australian Superannuation Funds have not provided this option in their service offerings. One Australian Superannuation Fund has recently announced that it will commence accepting eligible contributions from KiwiSaver accounts (from 23 October 2014).
7 At least one KiwiSaver provider, acting upon legal advice they have sought, is interpreting the rules in this way. 34 The intent of the portability rule was only to act as an exception to the ability to withdraw funds in cash upon permanent emigration (not an exception to the other KiwiSaver early withdrawal rules). Indeed: a. The reason for disallowing the withdrawal of funds in cash upon migration to Australia is to encourage a long-term savings habit and asset accumulation. The KiwiSaver early withdrawal provisions do not contradict this overarching purpose. For example, a withdrawal in the case of a terminal illness applies because the member will not benefit from a long-term savings habit. b. The portability rules are voluntary for both members and providers. Therefore, a KiwiSaver member who has migrated to Australia should not be forced to transfer to an Australian superannuation scheme in order to make an early withdrawal. In the worst case scenario, this could mean that a terminally ill KiwiSaver member living in Australia would need to transfer their funds to an Australian scheme to then withdraw their funds under the Australian terminal illness provisions. Not only is this a potentially unreasonable burden in itself, the member may also struggle to find an Australian superannuation fund willing to accept their funds. 35 I therefore recommend that the trans-tasman portability rule in the KiwiSaver rules be amended to clarify that the arrangements are only an exception to the ability to withdraw funds upon permanent emigration and are not an exception to the other KiwiSaver early withdrawal provisions. Whether or not the first home withdrawal is available for migrants to Australia will depend on Cabinet s decision as per the earlier discussion in this paper. Transfers from a complying superannuation fund 36 A complying superannuation fund is a registered superannuation scheme with membership rules broadly in line with KiwiSaver. The purpose was to allow superannuation schemes that pre-dated the introduction of KiwiSaver to offer KiwiSaverlike benefits to members. There are currently 26 complying funds registered with FMA. Under the KiwiSaver Act, membership of a complying scheme is broadly treated as equivalent to membership of KiwiSaver. 37 The first home withdrawal rules in the KiwiSaver Act state that an individual can make a withdrawal if they have been a KiwiSaver member for at least three years. The rules do not explicitly recognise prior years of membership in a complying superannuation scheme. Therefore, if a complying superannuation scheme member transfers their funds to KiwiSaver, the rules imply that the member needs to serve a further three years in a KiwiSaver scheme before making a first home withdrawal. 38 Inland Revenue has issued a directive on this issue, relying on the Income Tax Act 2007, and stating that a complying superannuation fund member who transfers into a KiwiSaver fund has continuity of membership for the purposes of the three year qualifying period. Despite the directive, some complying funds and KiwiSaver providers are reluctant to run the risk of non-compliance with the first home withdrawal rules. 39 The issue is gaining prominence as complying superannuation funds are consolidating or winding up and wanting to transfer their members to KiwiSaver. One of the largest complying funds, the $230 million ANZ National Bank Staff fund, is in the process of winding up.
8 40 I recommend that the KiwiSaver Act be amended to clarify that a complying superannuation scheme member who transfers into KiwiSaver has continuity of membership for the purposes of the three-year first home withdrawal qualifying period. 41 It is consistent with the intent of the complying superannuation scheme concept to count membership of such a scheme for the purposes of the first home withdrawal. This clarification will also ensure greater consistency with the operational rules of the other KiwiSaver based housing initiatives (that is, the KiwiSaver deposit subsidy and the second chance scheme which are administered by HNZC). Particularly as these initiatives are closely linked in KiwiSaver members minds, consistency is important to reduce confusion and complexity. Risks Potential for negative reaction to preventing overseas first home withdrawals 42 A decision on whether to allow the first home withdrawal for a home overseas is expected to be controversial either way, with public opinion divided on this issue. Regardless, it is important that a decision is made on this issue in order to ensure consistent application of the first home withdrawal provisions by providers. Risks of unintended consequences if trans-tasman portability rules not clarified 43 While officials are not aware of any issues since the trans-tasman portability arrangements came into effect in mid-2013, there is a risk of unintended consequences and associated controversy if the provision is not clarified. For example, as described earlier in this briefing, the current situation could prevent a terminally ill KiwiSaver member from withdrawing their funds if living in Australia. Risks of unintended consequences if Māori land issue not clarified 44 Without clarification, the Māori land issue is likely to become more pronounced and higher profile over time as the supply of houses increases (as developments of Māori land are progressed) and demand is fuelled by the growth of KiwiSaver fund balances over time. 45 Moreover, without clarification, there is a risk of undermining the Māori housing strategy and Māori economic development goals as well as the original KiwiSaver aim of improving Māori home ownership rates. Consultation 46 MBIE has consulted with the Māori Land Court in relation to the issue of a first home withdrawal for a home on Māori land. MBIE also consulted the FMA, financial dispute resolution schemes (Insurance & Savings Ombudsman, Banking Ombudsman, and Financial Services Complaints Limited), HNZC, Workplace Savings (a superannuation scheme representative industry body), and has surveyed individual KiwiSaver providers. 47 Treasury, Inland Revenue, and Te Puni Kokiri have been consulted on the content of this paper. The Department of Prime Minister and Cabinet has been informed. Financial Implications 48 There are no fiscal implications arising from the recommendations in this paper.
9 Human Rights 49 MBIE considers that this paper is not inconsistent with the New Zealand Bill of Rights Act 1990 and the Human Rights Act 1993. There are no gender or disability perspective implications arising from the recommendations in this paper. Legislative Implications 50 The clarifications proposed in this paper all require amendment to the KiwiSaver Scheme Rules in Schedule 1 of the KiwiSaver Act. 51 I propose that the amendments be made as part of the Taxation (KiwiSaver HomeStart and Remedial Matters) Bill which is expected to be introduced to the House and referred to Select Committee in early December 2014 and enacted by 1 April 2015. MBIE is exploring options with Inland Revenue to include the clarifications in this Bill. The clarifications are sought alongside the HomeStart change to avoid creating a potential loophole for permanent emigrants. Regulatory Impact Analysis 52 The Regulatory Impact Analysis (RIA) requirements apply to the proposals in this paper and a Regulatory Impact Statement (RIS) has been prepared and is attached. Quality of the Impact Analysis 53 The General Manager, Strategic Policy Branch and the Ministry of Business, Innovation and Employment Regulatory Impact Analysis Review Panel have reviewed the attached Regulatory Impact Statement (RIS) prepared by the Ministry of Business, Innovation and Employment. They consider that the information and analysis summarised in the RIS meets the criteria necessary for ministers to fairly compare the available policy options and take informed decisions on the proposals in this paper. Consistency with Government Statement on Regulation 54 I have considered the analysis and advice of officials, as summarised in the attached RIS and I am satisfied that, aside from the risks, uncertainties and caveats already noted in this Cabinet paper, the regulatory proposals recommended in this paper: a. Are required in the public interest, b. Will deliver the highest net benefits of the practical options available, and c. Are consistent with our commitments in the Government Statement on Regulation. Publicity 55 I will issue a media statement announcing the clarifications. 56 MBIE will engage with KiwiSaver providers (who are responsible for processing first home withdrawal applications) in advance of 1 April 2015 to ensure they are aware of the changes and amend their processes accordingly. Inland Revenue will update the guidance on its www.kiwisaver.govt.nz website. 57 An advice, information and education campaign will be run in parallel with the legislative change to ensure awareness and encourage uptake of KiwiSaver for those with an interest in Māori land. 58 Following the public announcements of the policy changes, MBIE will post this Cabinet paper and RIS on its website and send copies to entities and individuals that are likely to be affected or interested (subject to any redactions under the Official Information Act).
Recommendations It is recommended that the Committee 10 1 Note that the purpose of the KiwiSaver first home withdrawal is to assist members to purchase their first home, recognising that individuals who own their own home are likely to achieve a higher standard of living in retirement. 2 Note that a lack of clarity in the KiwiSaver first home withdrawal and trans-tasman portability rules has resulted in some confusion and inconsistent application and is preventing the scheme from operating as intended. 3 Note that in August 2014, as part of the HomeStart package, Cabinet agreed to permit first home buyers to withdraw their member tax credit from 1 April 2015 and directed Inland Revenue to draft the necessary amendments to the KiwiSaver Act [CAB Min (14) 28/9 refers]. 4 Agree to clarify that the first home withdrawal provisions in the KiwiSaver Act do not allow KiwiSaver members to make a withdrawal for the purpose of purchasing a first home overseas. 5 Agree to clarify that, in circumstances where a member has permanently migrated to Australia but has chosen to retain their KiwiSaver account, the trans-tasman savings portability arrangements are only an exception to the ability to withdraw funds upon permanent emigration and are not an exception to the other KiwiSaver early withdrawal provisions. 6 Agree to clarify that the first home withdrawal provisions are available for home ownership on Māori land and that existing interests in Māori land do not preclude access to a first home withdrawal. 7 Agree to clarify that prior years of membership in a complying superannuation scheme should count towards the three year eligibility period for a first home withdrawal if a complying superannuation fund member transfers their funds to KiwiSaver. 8 Agree that the above clarifications be made as part of the Taxation (KiwiSaver HomeStart and Remedial Matters) Bill. 9 Invite the Minister of Commerce and Consumer Affairs to issue drafting instructions to Inland Revenue for amendments to implement the proposals. 10 Authorise the Minister of Commerce and Consumer Affairs to make decisions, consistent with the overall policy decisions, on any issues which arise during the drafting process including any minor consequential changes to legislation that are identified before the drafting is finalised. 11 Agree to MBIE publishing this Cabinet paper on its website subject to any redactions under the Official Information Act. Hon Paul Goldsmith Minister of Commerce and Consumer Affairs / /