Oct 2, 2008

Rudd labor Government Delivers for First Home Buyers in Grayndler

Rudd labor Government Delivers for First Home Buyers in Grayndler

MEDIA RELEASE

The Hon Anthony Albanese

Minister for Infrastructure, Transport,

Regional Development and Local Government

Leader of the House

Member for Grayndler

October 3 2008

Anthony Albanese today welcomed the introduction of the Rudd Labor Government’s new First Home Saver Accounts.

The new accounts, which are available from October 1, provide a simple, tax effective way to save a deposit for a first home through a combination of a Government contribution and low taxes.

“Many people in Grayndler aspire to move out of rental accommodation and buy their own home – but today housing is less affordable than at any time in our history,” said Anthony Albanese.

2006 Census data shows that nationally new home owners moving from a rental property to a mortgage pay on average $540 more in repayments than their previous rent, in Grayndler new home owners pay on average $980 more, a significant burden.

“It’s tough to buy in the Inner West especially for those trying to move out of rental accommodation,” said Anthony Albanese.

Nearly 40% of all accommodation in Grayndler is rented, which is 12% higher than the national average.

Young people in particular are finding it harder than ever to save a house deposit – especially if they are living away from home.

That’s why the Rudd Labor Government is establishing First Home Saver Accounts.

Already the ANZ and Commonwealth Banks, as well as 18 other financial institutions like credit unions, have said that they will offer the new accounts.

Account holders will receive a cash contribution of up to $850 a year from the Australian Government to help them save a home deposit.

“Eighteen year olds in their first jobs can start off putting as little as $20 a week into a First Home Saver Account and increase their contributions as their pay increases over the years.”

“By the time they are in their late-20s or 30s and are thinking about buying a house – perhaps with their partner – they will have a nice little nest egg,” said Anthony Albanese.

One of the other innovations of these new accounts is that parents and grandparents can contribute as well.

So personal savings made by young Australians can be enhanced by deposits from family members as well as contributions from the Government.

“I encourage all prospective home buyers in Grayndler to contact their financial institutions to see if they are providing the new accounts,” said Anthony Albanese.

For more information, please contact my office or visit: http://homesaver.treasury.gov.au/content/default.asp