In a counter to the Australian Labor party’s election promise of making it easier for First home buyers, the Liberal party has come up with a plan – Super Home Buyer Scheme – which is not only for more responsible economically, but also really good for Australians – to make it easier for home buyers to be able to realize their dream of owning a home. As Michael Sukkar, minister for Housing explained on 3AW this morning, it is a no brainer and a win-win situation for all.
Under the scheme, first home buyers will be able to invest up to 40 per cent of their superannuation, up to a maximum of $50,000 to help with the purchase of their first home.
It will mean Australians can buy their first home sooner by slashing the time taken to save a deposit by three years, on average.
The scheme will apply to both new and existing homes with the invested amount to be returned to their superannuation fund when the house is sold, including a share of any capital gain.
This means that a person’s super is harnessed to purchase a first home while also protecting their long-term savings plan for retirement.
This plan is focused on supporting more Australians to realise their dream of home ownership.
Under the new scheme Super should be harnessed to support the aspiration of many thousands of families who want to buy a home.
According to Michael Sukkar the Super Home Buyer Scheme is be a gamechanger for aspirational Australians and provide hope and opportunity to first home buyers.
“The Liberal and National Government are fundamentally committed to helping more Australians achieve their dream of home ownership,” Minister Sukkar said.
“By allowing people to access their super and buy a house, we are providing the opportunity to turn that dream of home ownership a reality.
“Allowing your super to work for you to purchase your first home and then being returned to your super at a later date achieves the best of both worlds – home ownership and retirement security.”
Housing Minister Michael Sukkar says the Coalition’s new plan to assist first home buyers get into the market by allowing them to use their super would have an “immaterial effect” on house prices. https://t.co/QneWjlDBIk
— Sky News Australia (@SkyNewsAust) May 15, 2022
Supporting first home buyers was a key part of the re-elected Morrison Government’s Plan according to Minister Sukkar.
Both New and existing homes
Because the scheme applies to both new and existing properties, with the incentives offered to older Australians to downsize their properties if they so wish, there will be a lot more supply of homes in the market to choose from, which will keep the house prices under control as well.
It is estimated up to 1.3 million empty nesters and pensioners will be able to access incentives to downsize their house.
Australians over the age of 55 will now be able to downsize their property and invest up to $300,000, per person, in their superannuation fund outside of the existing contribution caps, from the proceeds of a sale.
Pensioners who downsize their home will also be given greater flexibility by exempting the proceeds of the sale of the property from the assets test for longer. This change means pensioners will now have two years to structure their assets following the sale of their home – without impacting their pension.
“These changes will directly help in unlocking the supply of larger homes for those younger families who are hoping to expand, and at the same time incentivise older Australians to downsize by putting more into their super,” Minister Sukkar said.
“By releasing more supply of larger houses, we are providing more choice for families.”
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