Home savings scheme on track

THE Federal Government says its First-Home Saver scheme will be in place within two months, despite mounting criticism of its design.

Home savings scheme on track

THE Federal Government has vowed its First-Home Saver Accounts scheme will be in place within two months, despite mounting criticism of its design.

The Real Estate Institute of South Australia is the latest group to criticise the plan, which involves the establishment of special low-tax accounts to help first-home buyers save for a deposit.

Before last year's election, the Government pledged to introduce the scheme by July 1, holding it up as the centrepiece of its strategy to address a national housing affordability crisis.

Under the current plan, which was refined in February, people earning less than $80,000 get a government contribution of 15c for every dollar saved. Those earning more than $80,000 get 25c and those on more than $180,000 get 30c.

But the proposal has come under attack from consumer groups, superannuation funds, financial institutions and other groups as being too complex and too costly to set up.