Today marks another Scott Morrison stuff up, this time over the First Home Super Saver Scheme which has not even been introduced to Parliament yet.
The Australian Tax Office (ATO) has today sounded a warning to those who might contribute money into their super accounts in the absence of any supporting legislation, despite Scott Morrison at the same time urging potential first home buyers to start using the scheme.
“Both measures are to commence on 1 July 2018. For the FHSSS, voluntary contributions made from 1 July 2017 will be eligible for withdrawal (provided all criteria are met) from 1 July 2018.”
– Scott Morrison, Press Release, July 21, 2017.
Despite Sco-Mo’s encouraging words, the Government is still not able to answer simple questions about how it will operate and under what circumstances money will be released from the scheme.
The ATO – who are due to implement the scheme - have been quoted as saying: "we are unable to comment on policy that is yet to be enacted by Government" and, that:
"If you are contemplating participating in this measure, you should remember that the proposal is yet to be legislated, and as such, should ensure that you are fully aware of the implications of this before making any financial decisions. You may wish to seek advice from a licensed financial adviser."
– Australian Tax Office spokesperson, Huffington Post, July 25, 2017.
This is the another fail for a Scheme that won’t fix the housing affordability crisis but will undermine superannuation.
Labor will not support it.
Rather than encouraging a raid on superannuation savings the Government should be supporting first home buyers by introducing policies that will actually work like reforming negative gearing and capital gains tax concessions.
The First Home Super Saver Scheme was a policy failure from the start – and the Government just keeps on stuffing it up.
TUESDAY 25 JULY 2017
This is a joint media release with Senator Doug Cameron (NSW).