FEDERAL MP Christian Porter has welcomed legislation to reduce pressure on first homebuyers and improve housing affordability in Pearce.
The First Home Super Saver Scheme, which was announced in this year’s Federal Budget, will give first home savers the ability to accelerate their savings by at least 30 per cent.
First homebuyers 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.
The contributions, which are taxed at the discounted rate of 15 per cent, along with deemed earnings, can be withdrawn for a deposit from July 1 next year.
Mr Porter said with many Australians entering the housing market late in life, this initiative would encourage people to save for a deposit earlier.
“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,” he said.
He said the Federal Government had also introduced legislation to allow older Australians to contribute the proceeds of the sale of their family home to superannuation.
From July 1 next year people 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 have held for at least 10 years.
He said the new measure would encourage people who may have been put off downsizing because of the existing restrictions and caps and in turn free up larger homes for growing families.
“These measures, combined with the broader housing affordability package announced in the Budget, demonstrate real action from the (Federal) Government to reduce housing affordability pressures for all Australians, including those living in our local community,” he said.