If National wants to encourage people to set up a new business a better way to do it would be Universal Basic Income which unlike the Jobseeker benefit is not conditional upon you seeking paid employment. Knowing you had a steady reliable income while you start up your business would encourage people to be entrepreneurial. This has been proven overseas where trials of UBI have been held.
Some or all of the $20,000 from Kiwisaver retirement money would probably be used for living expenses until your business was profitable, and not just as capital. If you set up a business like home handyman, lawnmowing or cleaning your capital costs probably would be minimal.
https://www.stuff.co.nz/national/pol...art-businesses
The policy would allow any worker who loses or lost their job after March 1 to receive a $1000 voucher for financial advice from the Government, access to $20,000 of their KiwiSaver retirement funds, another $10,000 in GST or provisional tax credits, and the waiver of the $130 Company Office registration fee.
One of the hardest things for starting up a new business is getting your hands on some capital, we figure it’s their money, why shouldn’t they be allowed to use it,” Collins, told Stuff in an interview on Wednesday morning.