Labor against first home super scheme

The treasurer is confident a scheme to allow first home buyers to save for a deposit via superannuation will pass parliament, even though Labor is against it.

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Shadow treasurer Chris Bowen has confirmed that Labor will not support the government's super housing scheme. Source: AAP

Treasurer Scott Morrison hopes first home buyers are already putting savings for a deposit into their superannuation accounts even though laws to help them do it haven't been passed.

The Turnbull government announced in the May budget a scheme that allows people to make up to $30,000 in voluntary super contributions over two years and then withdraw it when ready to buy a property.
The measure was meant to start on July 1 but no legislation has been introduced in parliament.

Asked whether young Australians should still be putting money into super, Mr Morrison said on Monday: "I would certainly hope so."

He dismissed the suggestion there was a risk that people wouldn't be able to access those savings until they retire if the laws don't pass.

"We're very confident of passing that through the Senate," he told Sky News.

"We're making the parliament work, we're making the Senate work. The budget is passing the Senate and we'll continue with that job when we come back (to parliament in August)."

Labor confirmed on Monday it will not support the scheme.

Shadow treasurer Chris Bowen said the measure will do nothing to address housing affordability but will instead undermine Australia's superannuation system.

"The treasurer continues to push this scheme on social media in a dishonest way despite no implementation or legislative information being available," he said in a statement.

"Quite rightly, the superannuation sector are cautioning Australians from entering the scheme ahead of the government releasing legislation and the accompanying administrative information."

Mr Morrison accused Labor of wanting people saving for their first home to pay more tax.

"What we're doing here is piggybacking superannuation to give people a tax cut on the money they would otherwise just put in a bank account and pay more tax on it," he said.

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2 min read
Published 3 July 2017 5:06pm
Updated 3 July 2017 5:32pm
Source: AAP


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