Federal Member for Hume Angus Taylor says the First Home Super Saver Scheme (FHSSS) will reduce pressure on housing affordability for first home buyers and downsizers.
The FHSSS, announced in this year’s Budget, will give first home savers the ability to accelerate their savings by at least 30 per cent.
First home buyers will be able to save for a house deposit within their superannuation by making voluntary contributions of up to $15,000 per year and $30,000 in total into their superannuation account.
These contributions, which are taxed at the discounted rate of 15 per cent, along with deemed earnings, can be withdrawn for a deposit from July 1next year.
Withdrawals will be taxed at marginal tax rates less a 30 per cent offset.
“With many Australians now entering the housing market later in life, this initiative will encourage first home buyers to save for a deposit more quickly,” Mr Taylor said.
“The First Home Super Saver Scheme is being supported by a suite of other measures to make home ownership more accessible to more people, including what we’re doing through City Deals.
“Growth in housing supply is also critical to giving people more access to home ownership.
“To do that you need good infrastructure going into places where housing supply can increase and that’s exactly what we’re doing in Western Sydney including parts of Hume,” he said.
Mr Taylor said for most people the First Home Super Saver Scheme will allow them to save for a deposit 30 per cent faster than saving through a standard deposit account.
Enabling legislation for the FHSSS was introduced into parliament earlier this week.
[social_quote duplicate=”no” align=”default”]“It is disappointing that the Labor Opposition have indicated they will not support the First Home Super Saver Scheme, which is a tax cut for first home buyers, choosing to reject the generous tax concessions and instead implement a disastrous housing tax which will drive up rents, making it harder to save for a deposit,” Mr Taylor said[/social_quote].
The Turnbull Government has also introduced legislation to allow older Australians to contribute the proceeds of the sale of their family home to superannuation.
From July 1 this year people aged over 65 will be able to make an additional non-concessional contribution of up to $300,000 into superannuation when they sell their home which they’ve held for at least 10 years.
Both members of a couple can take advantage of this measure, meaning up to $600,000 of contributions may be made by a couple.
“This measure will encourage people who may have been put off by downsizing because of the existing restrictions and caps, and in turn free up larger homes for growing families,” Mr Taylor said.
“These measures, combined with the broader housing affordability package announced in the Budget, demonstrate real action from the Turnbull Government to reduce housing affordability pressures for all Australians.”
First home buyers can also get an indication of how the scheme can benefit them by visiting www.budget.gov.au/estimator
