How will they monitor what accounts are specifically for houses? Or will a new account need to be set up? And what about those saving via shares/markets, i guess it would make sense to take the cash out if what the gov gives is better than current returns?FEDERAL cabinet has approved a scheme offering an effective tax break for aspiring first homeowners, giving them incentives to save a deposit.
Treasurer Wayne Swan said cabinet had agreed on the first home saver account, first flagged during the election campaign.
"This is a modest long-term measure to assist more young Australians to achieve their dream of home ownership,'' he said.
"Young Australians saving for their first home will attract a government contribution equivalent to 15 per cent discount on their marginal tax rate.''
The scheme will start in the second half of this year.
Mr Swan said there would be a minimum 15 per cent government contribution on after-tax contributions of up to $5000 saved by low-income earners.
That would go directly into accounts rather than through the more complex system of sacrificing pre-tax salary