Urban Development Institute of Australia National welcomed today’s announced Liberal party initiative that gives first home buyers the option to use more of their super to get their home.
From 1 July 2022, the scheme would enable first home buyers to take up to 40% of their super to help buy a home on top of a 5% deposit. Alternatively, up to $50,000 for individuals and up to $100,000 for couples may be accessed from their super. This means homebuyers can use a portion of their compulsory super for their deposit, not just their extra savings. Critically, this money, together with part the of capital gains, will be returned to super once the property is sold, ensuring retirement savings are not penalised in the long term.
“This policy will mean the difference between getting into a home sooner or, for some Australians, spending more time in an uncertain rental market,” said Max Shifman, UDIA National President.
This announcement aligns with one UDIA’s key policy priorities – A Home for Everyone – which recommends removing barriers for entry into the housing market, by developing new targeted financial incentives to boost capacity for entry and remove hurdles like the deposit gap.
The key to the success of this policy will be working quickly to increase new housing supply across the spectrum.
“UDIA National State of the Land research indicates that new housing supply will slump as much as 43% in the coming year from a lack of land supply. With costs and prices exacerbated by continued shortages of materials and labour, we need policies like today’s announcement which assist with capacity and demand to be linked with those that support more of the right housing being built,” Mr Shifman said.
“Federal political leadership should incentivise states and territories to boost development ready land, fast track enabling infrastructure and streamline planning and approvals to maximise housing affordability,” said Shifman. “This includes complementary initiatives that incentivise state and territory Governments to increase stamp duty thresholds, so selling a house is not penalised by high transaction costs,” he added.
UDIA National looks forward to working with the Federal political leadership to implement measures that will combat the affordability crisis and help all Australian’s find a home of their own.
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Deanna Lane | National Media & Communications Manager | 0416 295 898 | media@udia.com.au