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.
Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.
Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years.
Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.