Today the Rudd Government is releasing the First Home Saver Accounts (FHSA) discussion paper outlining the proposed features of the accounts and how they would operate.
This follows Cabinet's formal approval of the establishment of the FHSA on Monday this week.
The Government is seeking input from the community and industry on the exact detail of the proposal. We want the accounts to achieve our objective of providing a simple and tax effective way for Australians to save a larger deposit for their first home.
"In recognition of the financial pressures faced by young people and Australian families in purchasing their first home, we announced in the 2007 federalelection campaign that we would pursue this policy if elected," Treasurer Wayne Swan said.
"Now that we have formed Government we are delivering on that commitment but also enhancing the policy to make sure it benefits more recipients, including those at middle and lower income levels, and it is less complex now than it would have been."
Minister for Housing Tanya Plibersek said the main features of First Home Saver Accounts had been considerably strengthened because of the changes made to the proposal.
"We are keen to hear from the community and industry about their views on the proposal ahead of the implementation of the new accounts," Ms Plibersek said.
The consultation process provides an opportunity for industry and the community to assist the Government in ensuring the policy delivers on its objectives.
The Government is seeking commentsand submissions from industry and the community on the proposed operation of First Home Saver Accounts by 5March 2008. Treasury will also consult with industry to assist the Government in settling the detail of the proposal.
*Details on making submissions follow.
Interested parties are invited to make comments and submissions to:
Personal and Retirement Income Division
PARKES ACT 2600
Copies of the consultation paper can be obtained from the website: http://homesaver.treasury.gov.au/content/consultation_paper.asp, or by writing to or emailing the address above.
Copies of the First Home Saver fact sheet is available from the website: http://homesaver.treasury.gov.au/content/fact_sheet.asp
8 February 2008