First Home Saver Accounts Abolished

First Home Owner Saver Accounts have been abolished by the Federal Government in the new budget handed down this week.

Federal Treasurer Mr Joe Hockey MP has said that the scheme “had limited effectiveness in improving housing affordability due to the low take up of the accounts…”

The announcement is effective immediately and any new accounts opened after 13 May 2014 will not be eligible for the Federal Government co-contribution, or any tax or social security concessions.

This is expected to result in savings of around $125 M over the next four years.

No other benefits for First Home Buyers were announced in the budget.

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