The hard-working Member for Capricornia, Michelle Landry, has praised the introduction of leglislation into parliament that will directly help first home buyers and put downwards pressure on housing affordability for all Australians.
The First Home Super Saver Scheme (FHSSS), announced in this year’s Budget, will give first home savers the ability to accelerate their savings by at least 30 per cent.
Ms Landry explained that “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“These contributions, which attract a lower rate of tax (15%), along with deemed earnings, can be withdrawn for a deposit from 1 July next year. Withdrawals will be taxed at marginal tax rates less a 30 per cent offset” Ms Landry said.
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.
Assistant Minister to the Treasurer, Michael Sukkar, 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.”
Ms Landry said, “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. Sadly, they have chosen 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.”
The Government has also introduced legislation to allow older Australians to contribute the proceeds of the sale of their family home to superannuation.
From 1 July 2018, 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.
Assistant Minister Sukkar said, “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.”
“Many families throughout Capricornia are looking at how they can invest into their retirement for the future. The ability to make additional non-concessional contributions to their superannuation will help ensure they can fund their lifestyle throughout retirement” Ms Landry 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, including in Capricornia” Ms Landry said.
Further information on the First Home Super Saver Scheme is available at: http://www.budget.gov.au/2017-18/content/glossies/factsheets/html/HA_14.htm.
Further information on reducing barriers to downsizing is available at: http://www.budget.gov.au/2017-18/content/glossies/factsheets/html/HA_15.htm
First Home Buyers can also get an indication of how the scheme can benefit them by visiting: www.budget.gov.au/estimator.
Thousands of young people throughout Capricornia will find it easier to save for a deposit for their first home
Up to $30,000 can be deposited into super at a discounted tax rate to help saving
This will help young people get into their first home 30% quicker