CFS highlights flaw in housing super saver scheme

The way in which funds are released under the current proposal for the First Home Super Saver Scheme could be problematic for properties purchased at an auction, says Colonial First State.

Under the proposal for the First Home Super Saver Scheme, there is an issue in terms of when the money gets released for the purchase of a property, according to CFS executive manager Craig Day.

“At the moment, they’re thinking that once you’ve bought your house, you then take the contract and give it to the ATO and they’ll give you the release amount,” Mr Day said.

“That causes a little bit of a problem because if you go along to an auction, you’ve got to provide a deposit, so how are you actually going to do that?”

Mr Day said Treasury is working on solutions for how the scheme can work with these sorts of property purchases.

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