FHSA scheme needed review not scrapping: REIA

First home buyers saving for a deposit have lost an incentive with the abolition of the First Home Savers Account (FHSA) scheme in the federal budget, the Real Estate Institute of Australia (REIA) president, Peter Bushby says. 

It has created greater concern as the cessation of Government co-contributions for existing account holders will hurt those relying on them to bolster their savings.

“We would like to have seen the scheme reviewed and improved rather than simply thrown on the scrap heap because of an initial low uptake.”

“With home ownership in Australia declining and first home buyers finding it increasing difficult to enter the housing market, this will not help the situation.”

Bushby noted "by contrast" the government has indicated that the National Rental Affordability Scheme (NRAS) would be reviewed, "an action REIA supports”.

“With budget forecasts of moderate growth, a slight increase in unemployment and inflation well within the RBA’s target zone, interest rates should remain low for some time and that is good news for home owners and prospective buyers,” concluded Bushby. 

The REIA had previously compiled a 10-point wishlist for what it hoped to see in the federal budget.