Dixon Advisory is calling for bipartisan support to pass the First Home Super Saver Scheme legislation to give certainty to first home buyers that the proposal would be available for use in 2017.
The firm’s head of advice, Nerida Cole, said the proposed scheme would offer first home buyers tax concessions.
“For an average wage earner, if they are able to maximise the $30,000 limit over a two-year period, they will have approximately $5,000 more in their pocket to help with the home deposit – compared to saving in their personal name,” she said.
“These extra tax concessions aloe won’t be enough to fund a home deposit, but it can help shave time off how long it takes to save a deposit.”
Cole added that the draft legislation had addressed concerns about fairness by making clear that a first home buyer buying a home with a partner who already owned a home would not be excluded from using the scheme.
Features of the scheme included no time limit on the account, the ability for individuals to start saving up to $15,000 per annum from 1 July 2017, up to an overall maximum of $30,000, no need to open a separate account, and first withdrawals accessible from 1 July 2018.
The consultation period for the draft legislation closed on 4 August.
“Having a good financial situation in retirement involves much more than just what your super balance is – not owning a home in retirement creates enormous financial stress and instability,” Cole said.