Policy announcements in brief
Both major parties
- Downsizer Scheme eligibility lowered to 55 from 60 and proceeds exempt from pension assets test for two years instead of one
- Deeming rates frozen
- Income eligibility for Commonwealth Seniors Health Card increased to $90,000 from $58,000
Only Coalition
- Super Home Buyer Scheme – allows first home buyers to invest up to 40% of their super up to a maximum of $50,000 in first home.
Only Labor
- Expected to review the benchmarking tests of the Your Future Your Super legislation
As the Federal election draws ever closer both major parties have outlined a series of policies and intentions for superannuation and the nation’s retirement savings.
Potentially the most controversial so far has been Scott Morrison’s announcement on 15 May of a Super Home Buyer Scheme. That scheme will enable first home buyers to use up to 40% of their superannuation - to a maximum of $50,000, to assist in the purchase of a new home. If re-elected, the Morrison Government would implement the scheme by 1 July 2023.
Note: The Super Home Buyer Scheme would not replace the First Home Super Saver Scheme. Potentially first home buyers could use both schemes.
The scheme was cautiously welcomed by the Property Council of Australia. “While targeted demand-side policies to support aspiring homebuyers are welcome, a supply crunch is coming and this needs be the focus for whoever wins government next Saturday,” Property Council chief executive, Ken Morrison, said on Sunday.
