Kevin Rudd today unveiled further details of Labor’s housing affordability plan in Gyema Bay, part of the safe Liberal electorate of Cook, NSW.
Rudd made the announcement in the rented home of Dion Dickinson and Karen Black, where up to 30 journalists were crammed to watch the would-be-PM trade words, and quiche, with the potential first-home buyers.
Under the superannuation style proposal Australians could invest $10,000 a year in a First Home Saver Account. The first $5000 could be contributed from pre-tax income, taxed at the lower superannuation rate of 15 per cent. The next $5000 could be invested tax-free.
The account could not be accessed for at least four years and savings, if used to buy a home, could be withdrawn tax-free.
The plan would create about $3 billion in savings for home buyers, and would cost about $600 million in lost tax revenue.
"We, the Labor Party, stand by the great Australian dream. Mr Howard and Mr Costello's policies have been shredding the great Australian dream," Rudd said.