Fed: First homeowners saving scheme under fire

AAP General News (Australia)
04-18-2008
Fed: First homeowners saving scheme under fire

SYDNEY, April 18 AAP - The federal government's plan to increase national savings and
make housing more affordable has been slammed as unfair and too complex.

The government's first-home saver account plan is also criticised as highly regressive
and might not even be available on time, according to a flood of submissions to a Treasury
inquiry into the proposal, Fairfax reports.

They say it gives rich savers double the benefit of poor savers, makes no provision
for a direct withdrawal of funds if someone's circumstances change, its eligibility age
of 18 is too high, and it may be too complex and costly for superannuation funds to set
up by the proposed start date of July 1, the newspaper reports.

The government has refused requests by the Fairfax media to see the submissions, understood
to number about 120, even though the deadline passed six weeks ago.

The Treasury website said they would be treated as public documents unless otherwise requested.

But a number of submissions obtained by Fairfax media reveals a long list of criticisms
from consumer groups, super funds and other financial bodies.

AAP pc/it

KEYWORD: HOUSING

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