The Federal government has revealed its plans to introduce a new scheme allowing first-home buyers to save money within their superannuation funds.
Pre-tax income can be funnelled into a special partition within their super and taxed at a lower rate, and withdrawn later for a home deposit.
A $250 million package has been set aside to provide tax benefits to allow the prospective first home buyers save the deposit.
Up to $30,000, based on contributions of $15,000 per year starting on July 1, – money that would otherwise go into superannuation – can be used in the scheme.
Both members of a couple buying their first home can use the scheme.
There are changes for older Australians too.
Those aged over 65 can take up to $300,000 of the money they save by downsizing to a smaller home, and put it into their superannuation fund.
The Budget also revealed new measures to restrict foreign investment in property.
Overseas buyers will not be allowed to purchase more than 50 per cent of new residential developments.
Foreign owners will be hit with an annual fee of at least $5,000 if their property is not occupied or on the rental market for at least 6 months of the year.
Watch the budget analysis with Associate Professor of Business and Law at Deakin University, Harminder Singh
