First home super scheme passes lower house test
The ruling coalition has used its numbers in parliament’s lower house to push through the Budget move allowing first home buyers to contribute more to their super and then use it for a deposit.
It also says that the scheme won’t undermine Australia’s retirement savings system.
The legislation also allows older Australians to contribute the proceeds of the sale of their family home to their super, Fairfax Media reported.
The superannuation top-up scheme offers tax breaks.
Labor and the Greens are against the proposal, with the opposition saying it will do nothing to address housing affordability.
Shadow treasurer Chris Bowen said the scheme will only undermine the superannuation system, leading to a war of words with the ruling party.
Assistant minister to the treasurer, Michael Sukkar, said Labor was peddling misconceptions.
“It’s quite shocking and surprising to see any political party take a view that a tax cut for first home buyers is something that they cannot support,” Sukkar said.
Labor, however, would not oppose two other housing affordability bills announced in the budget.
The measures include limiting deductions investors can claim in relation to residential properties and slapping foreign owners with a vacancy tax if their property is vacant for at least six months during a one-year period.
Bowen said there was nothing to oppose because the measures were ineffective.
“What we see here is some minor tinkering which won’t do anything for housing affordability,” he told parliament.
