Embattled Porter outlines first home super saver scheme

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Pearce MHR Christian Porter, who is fighting to retain his seat, says federal Labor has indicated it is against the first home super saver scheme.

THE first home super saver scheme announced in this year’s federal Budget, will give first home savers the ability to increase their savings by at least 30 per cent, according to Pearce MHR Christian Porter.

Mr Porter said it was disappointing the Labor Opposition had indicated it would not support the first home super saver scheme, which was a tax cut for first home buyers, choosing to reject the generous tax concessions and instead implement a disastrous housing tax which would drive up rents, making it harder to save for a deposit.

The Department of Treasury website says the federal government released a consultation draft of legislation to implement the first home super saver scheme.

A first home super saver scheme consultation draft said the consultation draft legislation was intended to implement the scheme as described in the fact sheet but it was not yet law.

“The government intends to introduce legislation into Parliament to make it law after considering the results of this consultation process,’’ the fact sheet said.

“Treasury is seeking views from all stakeholders on the draft legislation.

“Would the draft legislation, if enacted in this form, accurately implement the design features of the FHSSS?

“Could it result in any unintended consequences?’’

Yanchep News Online understands submissions closed on August 4.

Mr porter said with the first home super saver scheme first home buyers would 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.

“These contributions, which are taxed at the discounted rate of 15 per cent, along with deemed earnings, can be withdrawn for a deposit from 1 July next year.

“Withdrawals will be taxed at marginal tax rates less a 30 per cent offset.’’

He said with many Australians now entering the housing market later in life, the initiative would encourage first home buyers to save for a deposit more quickly.

“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.

Mr Porter said the Turnbull 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 aged 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’ve held for at least 10 years.

He said both members of a couple could take advantage of the measure, meaning up to $600,000 of contributions could be made by a couple.

The measure would encourage people who may have been put off by 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 Liberal Government to reduce housing affordability pressures for all Australians, including those living in our local community.’’

According to a news report on Saturday, September 30 a poll carried out for the Australian Council of Trade Unions found on a two-party preferred basis Mr Porter’s seat could fall to Labor at the next federal election, with the Opposition ahead 51 to 49 per cent in Pearce.