Riverina MP Michael McCormack was in Young recently encouraging residents to use their superannuation to buy a house.
The Government's First Home Super Saver Scheme, announced in this year's Budget, aims to give first home buyers the chance to save for a house deposit within their superannuation by making voluntary contributions of up to $15,000 per year and $30,000 in total into their superannuation account.
Mr McCormack said contributions will be taxed at the discounted rate of 15 per cent, along with deemed earnings, and can be withdrawn for a deposit from July 1 next year.
Withdrawals will be taxed at marginal tax rates less a 30 per cent offset.
"The initiative demonstrates the Government's commitment to reducing the pressure on housing affordability for Riverina and Central West residents across the entire housing spectrum, including first home buyers," Mr McCormack said.
"With many Australians now entering the housing market later in life, this initiative will encourage first home buyers to save for a deposit more quickly.
“This will give first home savers the ability to accelerate their savings by at least 30 per cent.”
However, Shadow Minister for Small Business and Financial Services Katy Gallagher said the scheme won’t fix the housing affordability crisis but will undermine superannuation.
"Labor will not support this scheme," she said.
"Rather than encouraging a raid on superannuation savings, the Government should be supporting first home buyers by introducing policies that will actually work like reforming negative gearing and capital gains tax concessions.
"The First Home Super Saver Scheme was a policy failure from the start – and the Government just keeps on stuffing it up."
But, Ray White Real Estate Young principal David Coombes said any scheme that helps first home buyers get into the housing market should be welcomed.
"We have seen a dwindling number of first home buyers in Young over recent years," he said.
"The inability for young people to save for a deposit would be the biggest hurdle first home buyers are faced with."
Further information on the First Home Super Saver Scheme is available at: www.budget.gov.au/2017-18/contentlßlossies/factsheets/html/HA 14.htm.
First Home Buyers can also get an indication of how the scheme can benefit them by visiting: www.bud et. ov.au estimator.