LDP wants considerable boost to FHSSS and downsizer contribution

Liberal Democrat Senator David Leyonhjelm wants to considerably boost the proposed First Home Super Saver Scheme (FHSSS) and downsizer contribution.

Update: The Leyonhjelm amendment has been revised – it not longer includes the changes to the cap, instead including a requirement that the Minister start an independent review of the changes in the Bill. This review would be started, as soon as practicable, 18 months after Royal Assent and to be completed within 6 months.

The Senator has proposed an amendment which would raise the yearly contribution cap for the FHSSS from $15,000 to $30,000 and the total cap from $30,000 to $100,000. The amendment would also remove the requirement that the person had never held a home, replacing it with a requirement that they don’t currently own a home.

The Senator also wants the downsizer contribution – which allows people who downsize to contribution extra to super – to be more generous. His amendment would remove the restriction of being over 65, seemingly opening up the downsizer contribution to people of any age. Additionally it would remove the $300,000 limit for the downsizer contribution, replaced with “an amount equal to the general transfer balance cap for the financial year in which the contribution is to be made”.

The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Bill 2017 has already passed the House and may be debated again in the Senate on Thursday.

It is unclear yet how much support Senator Leyonhjelm has for his amendment, but with Labor and the Greens opposed to the FHSSS it is likely to be limited.

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