First-time homebuyers could use retirement under the Coalition

Morrison said the policy will allow first-time homebuyers to invest “a responsible portion” of their own super in their own home.

“You can now use your super to buy an investment property. But not his own house. Other countries, like New Zealand and Canada, also have policies that allow people to use their retirement savings to help them buy a home. And under a Morrison government he will be able to do that,” she said.

The Super Homebuyer Scheme will require legislation, but the Coalition wants it to start in July next year. It would allow first-time homebuyers to invest up to 40 percent of their retirement, up to a maximum of $50,000, to help purchase their first home.

It can be used together with the Home Guarantee Plan and the First Home Super Savings Plan.

The idea has been pushed by Coalition MPs, including Goldstein member Tim Wilson and NSW Liberal Senator Andrew Bragg, as well as a suggestion about the 2015 change of Joe Hockey as treasurer.

Morrison said the policy would apply to both new and existing homes and that “any amount that is invested will be returned to your super when you sell the home, including the portion of the capital gains from the sale of that home.”

Charging

Only first-time homebuyers will be eligible to access their retirement funds, and they will need to have separately saved 5 percent of the deposit to be eligible and will need to live in the home for at least 12 months, but there are no age, retirement thresholds. property or income.

Couples can access the scheme if both are eligible and if one member of the couple is not eligible it does not prevent the other from accessing.

The Prime Minister also announced the Coalition’s policy to allow Australians over the age of 55 to contribute up to $300,000 towards their retirement when they sell the family home.

Housing Industry Association managing director Graham Wolfe welcomed the scheme on the basis that access to a deposit was the biggest hurdle for Australians trying to buy their first home.

Charging

“This scheme builds on the many positive homeownership schemes that now exist to help first time home buyers achieve their aspiration of home ownership,” he said.

But the Financial Services Council, which represents retail superfunds, warned the move would undermine retirement savings.

“The FSC is concerned that the government’s proposal undermines the sole purpose of retirement, which is to provide a higher standard of living in retirement,” Chief Executive Blake Briggs said.

“The government has an obligation to do more to boost supply, otherwise unleashing retirement savings into the housing market risks driving prices up even more.”

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