Today’s decision by the Federal Cabinet to approve the establishment of First Home Saving Accounts is welcomed.
HIA first raised the concept of a First Home Super Saver as a measure to assist those first-home buyers saving for a deposit and to reduce the reliance on 100 plus per cent loans.
HIA Managing Director, Dr Ron Silberberg said, measures that promote saving, reward a savings culture and reduce reliance on debt are to be encouraged.
“As a nation we don’t save anywhere near enough. First Home Saving Accounts reward a savings culture and will assist young Australians attain greater financial security,” said Dr Silberberg.
The First Home Savings scheme has been enhanced since first proposed. The removal of the $50,000 cap on total contributions to these accounts will encourage greater saving towards home ownership.
“Moving to a Government co-contribution scheme will accelerate the implementation and take up of deposits and this is certainly a positive design feature of the scheme,” said Dr Silberberg.
