Govt leverages super system for home deposit scheme
Despite the misgivings of the Prime Minister, Malcolm Turnbull the Government has moved to provide at least some access to superannuation to fund home deposits.
The Treasurer, Scott Morrison has tonight announced that first home buyers would be able to save for a deposit by salary sacrificing into their superannuation account over and above the superannuation guarantee from 1 July, this year, under the so-called "First Home Super Savers Scheme".
The scheme, as outlined by Morrison, will attract the tax advantages of superannuation. Contributions and earnings will be taxed at 15 per cent, rather than marginal rates, and withdrawals will be taxed at their marginal rate, less 30 percentage points.
His Budget speech said that savers would not have to set up another account. "They can just use their existing super account and decide how much of their income they want to put aside to save for their first home deposit," he said.
Morrison said contributions would be limited to $30,000 per person in total and $15,000 per year.
"Under this plan, most first home savers will be able to accelerate their savings by at least 30 per cent," Morrison said.
Consistent with pre-Budget leaks, the Government confirmed it would be encouraging older Australians to free up housing stock, by enabling downsizers over the age of 65 to make a non-concessional contribution of up to $300,000 into their superannuation fund from the proceeds of the sale of their principal home.
"And on demand management, we will continue to prefer the scalpel to the chainsaw, to avoid a housing shock. Mum and dad investors will continue to be able to use negative gearing, supporting the supply of rental housing and placing downward pressure on rents. Our regulatory agencies will continue to use the flexible and calibrated controls they have available," he said.
"And we will legislate to extend APRA’s ability to apply controls to the non-ADI sector and explicitly allow them to differentiate the application of loan controls by location."
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