First home buyers need early access to super: ABN Group

First home buyers need early access to super: ABN Group
First home buyers need early access to super: ABN Group

Removing taxes and allowing first home buyers to use money from their super are a few of the changes the ABN Group finds necessary to improve home ownership in Australia, specially in Western Australia and Victoria.

In the submission to the House of Representatives Standing Committee on Economics, ABN Group said based on independent economic modelling commissioned by the HIA, housing affordability could be improved with the implementation of reforms which remove inefficient taxes that specifically effect housing, such as stamp duty on conveyance, and replace the government revenue with more efficient taxes.

"In the process of selling a property, stamp duty can be paid multiple times: at the sale of land to developer; from the developer to the builder and the sale of the house and land package to purchaser. The cost of this 'triple taxation' is reflected in the final purchase price paid by the homebuyer.

"Land tax incurred during the development phase of housing significantly adds to the holding costs of developers. In WA land tax has increased 30 per cent over the last two years. This additional cost further adds to affordability. 

"the ABN Group also strongly believes that payroll tax limits business and employment growth and development in this state [WA]. Although the ERA report labels payroll tax an efficient tax, ABN believe any review of state taxes must include a review of the impact of payroll tax, with a view to reducing the Government's reliance on this source of income.

"The single greatest hurdle to home ownership for first home buyers is overcoming the 'deposit gap'. the ABN Group believes that considerations should be made to help more first home buyers to save for a house deposit in Australia.

the ABN Group supports the WA Keystart program, which has funded 20% of all first home buyers. ABN believes that Victoria could benefit from a similar program.

ABN also suggests that a senior housing minister is appointed at state and federal level.

"Given the status of a senior cabinet member and their scope to drive change these appointments would facilitate housing policy outcomes for significant, yet neglected issues, such as housing affordability.

"This coordinated approach at both state and federal levels would remove current blockages and create efficiencies in providing home ownership solutions in Australia.

Superannuation Taxes

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