Government introduces first home scheme laws
Legislation for the government’s First Home Super Saver Scheme (FHSSS), as well as its proposed new superannuation rules for retirees downsizing their homes, have been introduced to parliament.
The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Bill 2017 and the First Home Super Saver Tax Bill 2017 were introduced and read a first and second time by Assistant Minister to the Treasurer Michael Sukkar in the House of Representatives yesterday.
Commenting on the introduction of the laws, Treasurer Scott Morrison said the government was moving forward on the issue of housing affordability.
“The FHSSS legislation…will be a game changer for young Australians trying to get their first place,” Morrison said.
“For most people, the FHSSS will enable them to boost the savings they can put towards a deposit by 30 per cent compared with saving through a standard deposit account. This will give prospective home buyers a significant step up at a time when saving for a deposit is becoming increasingly difficult for many people.”
He added that he expected many older Australians to be attracted to take up the new downsizing rules in order to vacate larger properties which no longer suited their needs.
“[The rules] will encourage people who may have been put off by existing restrictions and caps [to superannuation] to move house and free up larger homes for growing families,” he said.
Proposed in this year’s budget, the FHSSS would allow first home buyers to contribute up to $30,000 to their super over and above compulsory contributions, which could then be withdrawn to purchase a home.
At the same time, retirees who wished to downsize could get relief from recently introduced restrictions to super contributions by accessing an additional $300,000 in non-concessional contributions if the funds came from the proceeds of their home sale.
By Sarah Kendell
08 Sep 2017
financialobserver.com.au
Latest Newsletters
Hot Issues
- SMSF assets reach record levels amid share market rally
- Many Australians have a fear of running out
- How to get into the retirement comfort zone
- NALE bill passed by parliament
- Compliance focus impacts wind-ups
- LRBA interest rates increase for 2025
- Income-free areas set to increase from 1 July
- Most Spoken Languages in the World
- Middle-to-higher incomes boosting SMSF growth
- Investment and economic outlook, May 2024
- Transitioning into retirement: What you should know
- Plan now to take advantage of stage 3 tax cuts
- Deeming freeze a win for Age Pensioners
- Downsizer contributions can be time critical
- The superannuation changes from 1 July
- The Deadliest pandemics in History
- Winners & Losers
- Budget breakdown – Federal Government Analysis
- Federal Budget 2024
- Getting to a higher level of financial literacy in Australia
- What is the future of advice and how far off is superannuation 2.0?
- Investment and economic outlook, April 2024
- Australia’s debt service ratio ‘extraordinary’: CBA
- Connecting an adviser with your children
- ACCC scam report
- The Shortest-reigning Monarchs in History
- ATO warns trustees about increasing crypto scams
- Aged care report goes to the heart of Australia’s tax debate
- Removed super no longer protected from creditors: court
- ATO investigating 16.5k SMSFs over valuation compliance
- The 2025 Financial Year Tax & Super Changes You Need to Know!
- Investment and economic outlook, March 2024
Article archive
- April - June 2024
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
October - December 2017 archive
- For the young it a question of engagement
- Address Under-insurance at Personal Finance Level - Global study
- Realism vs reality - working part-time as retirees
- SMSFs warned on ‘ticking time bomb’ with outdated deeds
- Statutory wills are underutilised in estate planning
- Resources on our site to help you, your family and your friends.
- Calls to Review ASIC's Definition of Lapse Insurance
- Paperwork bungles lead to $38k in payments
- Self-employed? Don't miss out on super
- Australian Dietary Guidelines and healthy eating chart (PDF)
- Big concessions looking likely for transfer balance limit: ATO
- Raft of superannuation measures enter Parliament
- US Fed policy: Normalisation begins
- What the gig economy may mean for your super
- Powerful Budgeting, cash flow and Super Tools available on our site.
- Australia's leading causes of death - ABS
- Government introduces first home scheme laws
- Are young investors wasting their youth?
- ATO granted super enforcement powers
- The great Australian (retiree) dream