Australian Property News

$1.2 billion First Home Saver Accounts go untouched

Posted on Monday, July 26 2010 at 11:36 AM

The Federal Government’s First Home Saver Accounts have reportedly gone almost untouched since they were announced in the 2008 Budget.

According to the Federal Opposition, recent treasury advice to Cabinet reveal bluntly under the heading ‘Impact on Housing Market’: “No impact – no one uses it.”

Only 15,300 of the predicted 750,000 accounts have been opened and just $40 million (or five per cent) of the money spent, leaving $1.1 billion.

Opposition housing spokesman Gary Humphries says Labor has failed to deal with housing affordability.

“House prices are up 20 per cent, rents are sky high and there are 65 per cent more people sleeping on the streets,” he says.

“Julia Gillard must explain why this failing scheme has continued to go on unchecked while people are struggling to deal with higher rents and mortgage repayments.”