Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

in reply—I want to thank all honourable members who have made a contribution to this debate on the First Home Saver Accounts Bill 2008 and related bills. The introduction of the First Home Saver Accounts marks an important new beginning in housing policy in Australia. The accounts will help young Australians to once again realise the dream of homeownership. Of course, the biggest barrier to homeownership is saving a large enough deposit. The first home saver accounts will help a couple on average earnings save a deposit of more than $88,000 over five years, which is almost $13,000 more than they otherwise would have been able to. The 17 per cent government contribution together with the low 15 per cent tax rate on earning on a first home saver account will make these accounts attractive to many first homebuyers.

Federal Labor’s First Home Savers Accounts scheme is also part of our responsible approach to economic management as it encourages young Australians to save some of their hard-earned income. The accounts represent a key plank in the government’s root and branch strategy for tackling housing affordability. After 12 years of neglect, housing policy is once again getting the attention it deserves from the Australian government.

Contrary to the view of Sussan Ley MP, the member for Farrer and opposition housing spokesperson, the first home saver accounts are supported by other measures which will increase housing supply. These include: the Housing Affordability Fund, which will increase housing supply by providing money for local infrastructure and giving state and local government incentives to lower development charges; the National Rental Affordability Scheme, which will provide investors with tax incentives to increase the supply of new affordable rental properties across Australia, initially saving 50,000 low- and middle-income families 20 per cent on their rental bills; and a better approach to land release, with all surplus Commonwealth land being freed for housing development or community infrastructure.

The start date for the accounts has been delayed until 1 October 2008 to allow providers more time to develop products. But, contrary to the claims of Sussan Ley, first home savers will not be disadvantaged by the deferral as they will still be entitled to the full annual government contribution on the first $5,000 of personal contributions in 2008-09.

The former government never took housing seriously. Housing stress mounted and more and more young Australians were locked out of the housing market, but they did nothing about it. Our government has established a Minister for Housing and has acted to introduce the first home saver legislation, demonstrating the importance the government places on housing policy.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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