Nationals Member for Cowper, Luke Hartsuyker, welcomed the recent passage of housing affordability legislation through the Parliament.
Mr Hartsuyker said the Coalition Government’s First Home Super Saver Scheme (FHSSS) would help people across the Mid North Coast purchase their first home.
“The FHSSS is giving first home buyers a leg up by allowing them to save for deposit through their superannuation,” Mr Hartsuyker said.
“With housing prices at an all-time high, one of the greatest barriers to entering the market for first home buyers is saving the deposit. The FHSSS will provide a much needed tax cut to help first home buyers save their deposit.”
Through the FHSSS, individuals can make contributions of up to $15,000 per year, to an aggregate cap of $30,000, to their superannuation account to buy their first home. These contributions, along with deemed earnings, can be withdrawn for a deposit with withdrawals taxed at a marginal tax rate less a 30 per cent offset.
“Under this scheme, most people will be able to boost the savings they can put towards a deposit by 30 per cent compared with saving through a standard deposit account,” Mr Hartsuyker said.
Mr Hartsuyker said the Coalition Government was also committed to freeing up housing stock of larger homes for growing families.
“From 1 July 2018, people aged over 65 will be able to make a non-concessional contribution of up to $300,000 into superannuation from the sale of the family home, held for at least 10 years,” Mr Hartsuyker said.
“What this means is that, under this measure, a couple can make a contribution of up to $600,000 from the sale of their family home.
“This change will give older Australians greater flexibility to contribute the proceeds of the sale of their home into superannuation. If the family home no longer meets their needs, the Coalition Government is making things simpler for older Australians to downsize.”
More information on the FHSSS can be found online at www.ato.gov.au.