Sid Sidebottom (Braddon, Australian Labor Party) Share this | Hansard source

It is indeed. They will have a substantial little kitty to rely on. I think that is where many youngsters in my electorate have been caught out. They move out of home and into the rental market in their 20s. They are paying these big rents, or relatively big rents, while also paying more for their petrol and groceries, so consequently they are not making many or any savings. Then they get to their late 20s and suddenly realise they cannot afford to purchase their own home. I believe the first home saver account will help turn this around.

The second major innovation of the first home saver account is that family members are able to contribute as well. This is a key feature of the accounts, as all parents and grandparents would like to see their children realise the great Aussie dream to buy their own home. So if you are now a walking ATM for your children you will be able to continue to be a walking ATM and contribute to their savings accounts. So if a young person’s parents or grandparents were to contribute, say, $100 as an 18th or 21st birthday present, the government will also give them $17, which is not a bad present from Uncle Kevin and the government. These accounts will initiate a major mindset shift back into long-term saving which will then flow onto future generations. If we can get our younger generation to get saving right now and subsequently pay off a mortgage during their lifetime then this financial security will be passed onto their children and then their children’s children after that.

Finally, both the National Rental Affordability Scheme and the first home saver accounts—in addition to the first home owner grant, which we have recently increased—are fantastic, practical initiatives of the Rudd government. We are not just talking about our country’s current housing crisis; we are getting in there and doing something about it. I commend this legislation to the House. And for the record I thank Deputy Speaker Vale before you, Mr Deputy Speaker Georganas, for helping me out earlier today when I was supposed to be in the chair and opening the Main Committee.

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