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Date Published : Tuesday, February 05, 2008
Tax concessions worth an estimated $850 million will be on offer to any consumer wishing to save up for their first home, it has been announced.
Last month, the new Labor government gave the go ahead for First Home Savings Accounts, which will be available to all Australians wishing to save for the deposit on their first home by July 1st.
Now, the Treasury and prime minister Kevin Rudd have announced that the savings scheme will give people paying no tax - or those on the 15 per cent or 30 per cent marginal tax rates - a $750 government contribution to their accounts for every $5,000 saved during a given year.
Treasurer Wayne Swan said: "This is a modest long-term measure to assist more young Australians achieve their dream of home ownership.
"Young Australians saving for their first home will attract a government contribution equivalent to a 15 per cent discount on their marginal tax rate.''
The plans will mean that the federal contribution will go directly into savings accounts, rather than into consumers' bank accounts through tax rebates.
Last week, housing minister Tanya Plibersek told the Adelaide Advertiser: "It is a really sad thing to think that a generation of young Australians has given up on the idea they will ever own their own home."
Ms Plibersek - Australia's first housing minister - added: "Australia has high levels of home ownership, we want that to continue."
Australian savings accounts compared and reviewed.
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