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New laws have been passed to ease access to home ownerships for first home buyers, as the ATO reveals that close to $40 million in super has been released in the first year of operation of the First Home Super Saver Scheme.
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New bill supporting first home buyers passed
16 October 2019
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Passed this week, the National Housing Finance and Investment Corporation Amendment Bill 2019 will introduce the First Home Loan Deposit Scheme, allowing up to 10,000 eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 per cent.
Applicants will be subject to eligibility criteria, including having taxable incomes up to $125,000 per annum for singles and up to $200,000 per annum for couples. The scheme will apply to owner-occupied loans on a principal and interest basis, and will be subject to regional price caps.
The new First Home Loan Deposit Scheme will complement the First Home Super Saver Scheme (FHSSS), which enables individuals over 18 who have never owned a home to apply to release voluntary contributions from their super fund to buy their first home.
The FHSSS, which allowed individuals to withdraw from 1 July 2018, has now released $39.4 million, helping 3,300 individuals purchase their first home, according to the ATO’s latest update.
Likewise, the downsizer measure has resulted in some 4,900 individuals across every state and territory making super contributions to the value of $1.1 billion.
“The government recognises that saving a deposit has become a more significant barrier to entering the housing market. It can take 10 years for the average first home buyer to save a 20 per cent deposit,” said Treasurer Josh Frydenberg in a joint statement with Assistant Treasurer Michael Sukkar.
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“These incentives have helped thousands of first home buyers enter the market. In the past year, more than 110,000 Australians bought their first home — the highest level since 2009.”
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