Australia could learn from New Zealand's first home buyers super scheme: REIA

Australia should follow New Zealand’s lead in allowing first home buyers to withdraw from their superannuation to help purchase a home, according to the Real Estate Institute of Australia.

The voluntary Kiwisaver superannuation scheme allows first home buyers to withdraw some or all of their savings to buy a home and committed members also receive a once-off payment of up to NZ $5000 for home deposits.

Members of the scheme can choose to contribute 3%, 4% or 8% of their gross salary and their employer contributes at least 3% of their gross salary. The government seeds the account with NZ $1000 and contributes up to NZ $521 per year.

Members are normally unable to touch their money until they are 65. The scheme started in 2007.

The NZ $5000 payment functions as New Zealand’s only first home owners grant.

In the year to March 10,733 KiwiSaver members have used the first home owners initiatives, according to New Zealander housing minister Nick Smith.

The REIA says access to schemes like this could help improve Australia’s declining home ownership.

“With over 82% of all Australian households holding at least some savings in their superannuation account and the average value across all households at $142,429, some access to these sources could reverse the current trend of declining home ownership,” REIA president Peter Bushby says.

“Both of these features can also be used to help with the overall deposit when buying land to build a first home house on. Furthermore, if a person has previously owned a home but is currently in a similar financial position to a first home buyer, they may still be eligible for both features.”