Scott Morrison to let first-time home buyers use 40% of their super to buy a home

First-time home buyers will be able to dip into their retirement pension and use up to 40% of their savings to buy a new home.

Prime Minister Scott Morrison used the Liberal Party’s election campaign launch in Brisbane on Sunday to unveil his ‘super homebuyer scheme’.

“I’m going for a second term because I’m just warming up,” he said.

Homebuyers will be able to use up to $50,000, or a “responsible portion,” of their retirement pension to invest in their first home.

“We want to help more Australians overcome what is the biggest hurdle on their way to home ownership. [and] it is the difficulty of saving for a deposit. And being able to use your own money to do it,” Mr Morrison said.

Prime Minister Scott Morrison used the Liberal Party’s election campaign launch in Brisbane on Sunday to unveil the new plan under the Super Home Buyer Scheme

Treasurer Josh Frydenberg poses with former Prime Minister John Howard at the campaign launch

Treasurer Josh Frydenberg poses with former Prime Minister John Howard at the campaign launch

The money can be withdrawn from the superannuation account and used to buy an existing or new home (stock image)

The money can be withdrawn from the superannuation account and used to buy an existing or new home (stock image)

“The maximum amount that can be invested under this plan is the lesser of $50,000 or 40% of your total superannuation balance.

“The superannuation is there to help Australians in their retirement. Evidence shows that the best thing we can do to help Australians achieve financial security in retirement is to help them own their own homes.

The money can be withdrawn from the superannuation account and used to purchase an existing or new home.

If the house is sold, the money taken to invest in the house will be returned to the superannuation account, including a share of any capital gains.

Mr Morrison said the scheme would cut the average time it takes to save for a home by three years.

He said the plan would make it easier for buyers to own their first home and reduce the number of renters.

“Our plan makes it easier for first-time home buyers to save for a deposit, which reduces the time people need to pay rent, and also means a smaller mortgage with less debt and longer repayments. little ones,” he said.

“It’s a plan that strikes the right balance – it uses the money that’s currently locked up to transform a family’s life, with the money then responsibly returned to the super fund when the house is sold. .”

Under the coalition’s expanded housing policy, up to 1.3 million empty nesters and retirees will also be able to access incentives to downsize their homes, as part of a plan to help more families to obtain housing.

“We want to help more Australians overcome what is the biggest hurdle on their way to home ownership. [and] it is the difficulty of saving for a deposit.  And being able to use his own money to do it,' Mr Morrison said

“We want to help more Australians overcome what is the biggest hurdle on their way to home ownership. [and] it is the difficulty of saving for a deposit. And being able to use his own money to do it,’ Mr Morrison said

Prime Minister Scott Morrison kisses his mother Marion after his speech

Prime Minister Scott Morrison kisses his mother Marion after his speech

Mr Morrison also used the launch of the election campaign to claim his government had 'saved the country' during the Covid pandemic (pictured, Tony Abbott with Jeanette and John Howard)

Mr Morrison also used the launch of the election campaign to claim his government had ‘saved the country’ during the Covid pandemic (pictured, Tony Abbott with Jeanette and John Howard)

Scott Morrison’s last chance policy: use your super to buy a house

First-time home buyers will be able to dip into their retirement pension and use up to 40% of their savings to buy a new home.

Prime Minister Scott Morrison announced on Sunday that a “responsible share” of up to $50,000 could be withdrawn from the account.

The money can be withdrawn to be used on existing or new homes.

If the house is sold, the money taken to invest in the house will be returned to the superannuation account, including a share of any capital gains.

Mr Morrison said the scheme would cut the average time it takes to save for a home by three years.

Australians over 55 will be able to downsize their property and invest up to $300,000, per person, into their superannuation fund outside of existing contribution limits, from the proceeds of a sale.

Retirees who downsize their homes will also have greater flexibility as proceeds from the sale of the property will be exempt from the asset test for a longer period.

They will have two years to structure their assets after the sale of their house without harming their retirement.

Labor Senator Murray Watt said his party would always support a good idea.

“We are going to support this one. We think it’s a good idea worth taking,’ he told Sky News.

“But the reality is that one announcement from this government after almost a decade in power is not going to solve the housing crisis we are seeing in Australia.”

Mr Morrison also used the launch of the election campaign to claim that his government had “saved the country” during the Covid pandemic.

“We have given our fellow Australians this assurance in these very difficult times that tomorrow will be fine,” he said at the Brisbane Convention Center on Sunday.

‘So they could say the same to their children, to their employees, and I’m quite sure to themselves.

Deputy Prime Minister Barnaby Joyce with former Prime Minister Tony Abbott at the Sunday election campaign launch

Deputy Prime Minister Barnaby Joyce with former Prime Minister Tony Abbott at the Sunday election campaign launch

Deputy Prime Minister Barnaby Joyce with his wife Vicki Campion at the launch in Brisbane

Deputy Prime Minister Barnaby Joyce with his wife Vicki Campion at the launch in Brisbane

“As a leader, it was a time for strength, it was a time to push forward. I had one goal, as prime minister, to save the country. And we did that.

Mr Morrison defended his record as a leader and admitted his coalition government had faced a difficult few years.

“It was one of the toughest times we’ve ever had,” he said.

“But I’m here to tell you today that despite what we’ve had to face, we’ve stayed true to Australia’s promise. And Australia won.

“We want to help more Australians overcome what is the biggest hurdle on their way to home ownership. [and] it is the difficulty of saving for a deposit. And being able to use your own money to do it.

Mr Morrison defended his record as leader and admitted his coalition government had faced a difficult few years

Mr Morrison defended his record as leader and admitted his coalition government had faced a difficult few years

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