Abacus – the industry body for Australian mutuals – has urged the Federal Government to ensure its proposed first home saver accounts are attractive for young people and lower income earners.
In a submission to the Federal Government, Abacus proposed that the superannuation co-contributions scheme be extended to the first home saver account program to provide a barrier against inflation and to foster a national culture of saving.
“Under the superannuation co-contribution scheme, low income earners are eligible for Government payments up to $1,500 annually,” said Abacus acting chief executive Louise Petschler.
“We put forward options in our submission to link the super co-contributions scheme with the first home saver account program,” she said.
The Government submission also focused on the design of the saver account program, suggesting it should “maximise choice and competition to benefit savers and to provide safeguards to protect risk-averse savers”.