Speech on First Home Saver Accounts
Wednesday, 22 April 2009 05:25
Mr Speaker, it’s a pleasure to get up before you and speak on this Bill.
This Bill is part of a complex and ground-breaking policy that aims to help Australian on one of the big issues of their lives.
Mr Speaker, it’s a pleasure to get up before you and speak on this Bill.
This Bill is part of a complex and ground-breaking policy that aims to help Australian on one of the big issues of their lives.
Mr Speaker, people dream.
People dream about a lot of things.
But one of the great Australian dreams is home ownership.
This Bill is about helping to deliver that dream.
And we are doing this through a range of policy initiatives that have never been tried before.
A range of linked policies that fit together into an overall strategy.
In the past, most Australian governments, did one of two things in promoting home ownership.
They either tinkered around the edges.
Or they did nothing.
The last Australian Government took the latter course.
Although there is a strong argument to say they took the third way; which was driving people out of their homes.
As the record holder for most interest rate rises in a row, there was literally thousands of Australians who lost their homes under the previous Federal Government.
This Government – the Rudd Labor Government, is doing something very different.
We are tackling this issue head on.
We are tackling the fundamentals.
Mr Speaker, it is on this issue that the Rudd Government is distinguishing itself.
Our policies in promoting home ownership show ideas and guts.
In my book, two crucial ingredients in good government.
Labor is having a real go on this very difficult issue.
Mr Speaker, I’m going to be a bit candid here.
In my view housing affordability and home ownership is actually one of those issues that flush out the foundations of a politician.
It flushes out the foundations of a government.
In politics, we have two classes as I see it.
Class 1 is the expectations managers.
The issue of home ownership and housing affordability, because it is tough, has certainly brought out the expectations managers. In droves.
Class 2 are the pollies who try to make a difference.
Labor is definitely showing a bit of dash on this issue.
And I am confident we will make a difference.
We are tackling the fundamentals.
This Bill provides Australian first home buyers with a big leg up.
First home saver accounts are the first of their kind.
They provide a tax effective way for Australians to save for a first home.
Through a combination of government contributions and low taxes, Australians can get their dreams fast-tracked.
The financial example is this.
A couple each earning average incomes, with both putting aside 10 per cent of their income into individual first home saver accounts, they would be able to save more than $88,000 after five years.
That’s a very big leg up Mr Speaker.
But this is only one part of Labor’s policy jigsaw.
It is important when considering this Bill we put our first Home Saver Accounts in the context of Labor’s overall strategy.
Our strategy also includes The Housing Affordability Fund.
The Housing Affordability Fund goes together with the First Home Saver Accounts.
And these two innovative policies go together with our determination to keep downward pressure on interest rates to help to deliver the Australian dream of home ownership.
I’ll take a minute to again reiterate the Housing Affordability part of the equation Mr Speaker because it is important context.
The Federal government has put $512 million in a five year program to address housing affordability.
That money can go to councils, developers, or state governments – or a combination of these.
These bodies can get very significant funding if they are able to show how, through streamlined planning processes more land can be brought onto the market and holding costs will be reduced.
If Councils, State government’s or developers can show these saving, and how these reduced costs will be passed on to the home buyer, we are backing them with very substantial funds.
If councils, or developers or state governments can show this, the Federal government will allocate money to fund specified project such as roads, community services or water projects.
This will give home buyers a triple whammy of benefits.
Home buyers get the benefit of First Home Saver Accounts.
Then they will get the benefit of reduced holding costs, and will not have to wear other costs, such as community services, roads and water infrastructure that are normally just passed on to the home buyer and rate payer.
Mr Speaker, as I said, this is a new area of policy.
It’s a new innovative area of policy.
And it’s not just me saying that.
I was recently very pleased to read in the Geelong Advertiser a clear endorsement from the Housing Industry Association Chief Executive, Chris Lamont.
Responding to my announcement of a region summit on housing affordability and the Housing Affordability fund he said and I quote.
"We have been recommending this sort of thing," he said.
The Geelong Advertiser reported Mr Lamont saying that opening up of new land, creating a boost to supplies, was a quote "absolutely sensible strategy" to increasing affordability.
The Geelong Advertiser also reported Mr Lamont as saying that the Housing Affordability Summit quote “seemed to be tackling the fundamentals that were keeping first home buyers out of the market.”
Mr Speaker, that is a ringing endorsement.
It’s a ringing endorsement on the fundamentals of our policy.
And I don’t think anyone would say that the HIA a pro-Labor or biased commentator.
Chris Lamont was calling it as he saw it.
Mr Speaker, this is great policy for my own region.
Corangamite is now – and will be for the foreseeable future – the growth region for regional Victoria.
It will be one of the great growth regions within Australia.
Our region is full of first home buyers, and the numbers of these people will grow rapidly in the immediate future.
Affordable home ownership and getting people assistance in buying a home has probably pre-occupied more of my time and my staff’s time since being elected than any other issue.
It has been one of my top priority issues.
Through these innovative home ownership policies, our region is poised perfectly to make a difference on housing affordability, certainly for the next generation of home buyers.
And I’m pleased to say, our region is probably the most advanced in our thinking of any region in Australia on how to take best advantage of these policies.
We are currently positioned very well on this.
Not only has a lot of the work been done in recent times in our region to alert people to the opportunities in relation to the Federal government’s programs and policies.
There’s real enthusiasm in our region for the Rudd government’s policies.
I have to say I was really heartened at the recent Regional Housing Affordability Forum at City Hall.
It was a genuine example of the all three levels of Government getting together and seemingly on the same page. How often do you see that?
Amazingly, I don’t think any level of government came out of that meeting blaming the other.
There was even Labor and Liberal councillors and politicians in there, all getting along.
I had to pinch myself Mr Speaker.
Councillors, Labor and Liberal, State Minister, Federal Minister, State MPs, Federal MPs, Industry experts, a representative from the Urban Development Institute all working together.
Do you believe that Mr Speaker?
Mr Speaker these policies around our first home Savers Account and Housing Affordability are living examples of Labor’s cooperative federalism.
Labor’s Cooperative Federalism is delivering on the Australian dream of home ownership Mr speaker, as well as on other fundamental issues.
Mr Speaker the First Home Saver Accounts (Further Provisions) Amendment Bill 2008 includes various provisions to make the scheme operational.
These include:
a system for dealing with unclaimed money;
amendments to secrecy and information sharing provisions between the ATO, APRA and ASIC;
and,
dealing comprehensively with family law situations.
Mr Speaker, aside from a family’s safety and health, there is nothing more important than owning your own home.
It provides security. It provides satisfaction. It provides sanctuary. It is the boundary around your family.
It’s a first order issue.
And Mr. Speaker the biggest step in home ownership is the first.
I know that Mr Speaker. I know it because I am still paying off my first home today.
Just a few years ago I took that very big step.
Buying a first home, for many people, is a great leap of faith.
It certainly was for me.
It’s a time when families take on a large debt, and many families need support and assistance to make this transition.
That’s exactly what Labor is doing.
The Rudd Government will be investing around $1.2 billion over four years in the First Home Saver Account initiative.
Mr Speaker, Labor’s First Home Owners Account policy will not just help young families.
It will help older families who may have kissed their chances of owning a home goodbye.
It will resurrect their hopes.
Any individual can open an account if they are aged between 18 or over, and under 65.
These accounts operate very flexibly. They are designed to accommodate and meet the needs of individuals and families.
These policies were developed following a detailed consultation process with consumers and the finance and housing industry.
Mr Speaker, all I can say is, I wish this policy was around when I purchased my first home just a few years ago.
This is a very good scheme. It has been well thought through.
Over the first three years Federal Labor’s First Home Saver Accounts will help around half a million first home buyers save bigger deposits.
With the escalating housing costs over recent years, saving a home loan deposit is very tough. It is the greatest obstacles to buying a first home.
This policy will help thousands of Australians overcome that barrier.
Mr Speaker, Labor’s First Home Saver Accounts are not just good policy in themselves.
They are a sign of Labor’s creative thinking, and our commitment to tackle the real needs of Australians.
By implementing the First home Saver Accounts, delivering on our Housing Affordability fund, and just as important, keeping downward pressure on interest rates we are tackling the fundamentals.
We are tackling the fundamentals on the fundamental issue of home ownership.
Thank you Mr Speaker.
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