Money Govt pushes first home buyer super scheme

03:20  07 september  2017
03:20  07 september  2017 Source:   MSN

Turnbull shifts focus to power prices with Snowy Hydro spruik

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Legislation to allow first home buyers to use up to ,000 of voluntary super contributions for a deposit The measure was meant to start on July 1 and Treasurer Scott Morrison has been pushing the scheme , even though it has not yet been legislated.

The government hopes changes to super contributions will help first home buyers . Some economists have previously questioned the wisdom of such a scheme , warning it may simply increase demand and push up house prices.

In Cleveland, Ohio, you can still snap up a home for under $500. © LM Otero/ASSOCIATED PRESS In Cleveland, Ohio, you can still snap up a home for under $500. The Turnbull government will present to parliament its much-spruiked plan to help first home buyers save for a deposit through superannuation.

Legislation to allow people to make up to $30,000 in voluntary super contributions over two years and then withdraw it when ready to buy a property is scheduled to be introduced in the lower house on Thursday.

The scheme was announced in the May budget in a bid to reduce pressure on housing affordability.

The measure was meant to start on July 1 and Treasurer Scott Morrison has been pushing the scheme, even though it has not yet been legislated.

Labor confirmed last month it will not support the scheme, arguing it won't do anything to address housing affordability.

It believes it will instead undermine Australia's superannuation system.

The government is also set to introduce a bill that would tax foreign owners who buy residential property and leave it vacant.

"It's a thoroughly bad idea": Tanya Plibersek on the first home buyers superannuation scheme. .
Last week, Malcolm Turnbull and the Liberals have been fighting amongst themselves about whether young Australians should be allowed to use their superannuation to buy their first home. On the surface, it may seem like an attractive idea: all that money just sitting there doing nothing, right? Wrong.The truth is that letting people use their super to buy a home will just push up house prices even further. And it does nothing to increase housing supply.All it does is put extra money in the market that will fuel a bidding war – driving up house prices. Housing prices already rose 19 per cent in Sydney in the last year.

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