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Government to push for first home buyer superannuation scheme
SBS News8 September 2017
AAP
The Turnbull government reckons first home buyers could boost their savings for a deposit by up to a third under its much-spruiked superannuation scheme.
They will be able to make up to $30,000 in voluntary super contributions over two years and then withdraw it when ready to buy a property, under draft laws introduced to parliament on Thursday.
The measure was announced in the May budget in a bid to reduce pressure on housing affordability.
Assistant Minister to the Treasurer Michael Sukkar said home ownership was falling out of reach for many younger Australians.
"With house prices high, difficulty saving a deposit is a key barrier to getting into the market," he told the lower house.
"The changes in this bill are essential and why we need to act now."
For most people the scheme could boost savings by at least 30 per cent, he said, compared with saving through a standard deposit account.
Those who don't use the savings to buy a property within a certain period will have to pay a tax to make up for the concessions received under the program.
Shadow treasurer Chris Bowen labelled the proposal "dodgy", "dangerous" and "hopeless" and said Labor opposed the legislation.
"(It) will do nothing to address housing affordability but will instead work to undermine Australia's world class superannuation system," he said.
Mr Bowen criticised Treasurer Scott Morrison for spruiking the scheme since May despite there being no legislation available until now.
He called on the government to disclose how many have taken up the offer since July 1, its slated start date.
The proportion of loans given to first home buyers in June was at 15 per cent - the highest since February 2015.
Legislation was also introduced to allow those 65 or older to contribute up to $300,000 - or $600,000 per couple - to their superannuation after selling their main residential home to downsize.
