Measures to help all with home ownership
Owning your own home is the great Australian dream and it is something this government is proactively doing something about.
With many Australians now entering the housing market later, it has become clear an initiative that encourages first home buyers to save for a deposit more quickly was needed.
That’s why in this year’s budget the creation of the First Home Super Saver Scheme was announced which gives first home savers the ability to accelerate their savings by at least 30 per cent.
First home buyers will 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 These contributions, which are taxed at the discounted rate of 15 per cent, along with deemed earnings, can be withdrawn for a deposit from 1 July next year.
But there are home ownership pressures for seniors in our community who have raised a family and now have largely empty homes. So the government has also introduced legislation to allow older Australians to contribute the proceeds of the sale of their family home to superannuation.
From July 1, 2018, people aged older than 65 will be able to make an additional non-concessional contribution of up to $300,000 into superannuation when they sell the home they’ve held for at least 10 years.
Both members of a couple can take advantage of this measure, meaning up to $600,000 in contributions may be made by a couple.
This is designed to encourage people who may have been put off by downsizing because of the existing restrictions.
What it also does is free up larger homes for growing families wanting to get into the housing market.
Addressing housing issues on both ends of the spectrum and removing barriers that restrict choice are key initiatives that can make a real difference at the local level.