Save the 'great Australian dream' | #SaveGreatAustralianDream

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Save the 'great Australian dream' | #SaveGreatAustralianDream

This petition had 289 supporters
First Home Buyers Australia started this petition to Australian Government

The great Australian dream of home ownership is under threat. It is under threat due to the fact current house prices in many markets rising at a rate that is faster than a persons ability to save. 

Low wage increases & low interest rates on savings accounts don't help aspiring first home buyers save a deposit big enough to get into a property market that is being dominated by local and overseas investors. 

Recently (December 2016) a 20 month parliamentary inquiry into housing found there was:  

  • Nothing wrong with home ownership levels amongst young people; and,
  • That there is nothing the Government needs to do in order to help young people own there own home other than support States in releasing residential land supply.

We aren't sure where the inquiry was exactly looking but:  

  • Current first home buyer purchase activity is at around all time lows;
  • Home ownership amongst younger people is at an all time low;
  • There are indeed way's the federal Government (& state governments) can make a difference (and should ASAP).

Many tax policies are simply too generous for investors, disadvantaging first home buyers. Why does an investor buying his/her 201st investment property receive more tax help than a first home buyer couple trying to stop renting and buy their first home?

We have prepared this petition to recommend that the Australia's federal & state governments consider the following 5 policies to make the property market fairer for all Australians (and to help keep the property market open for current + future generations to buy their first home).

  1. Reduce interest tax deductions for investment purposes from 100% tax-deductible to 50% tax-deductible. This means negative gearing will still exist, but there will be a higher incentive for investors to reduce debt, as interest costs will no longer be 100% deductible. (Federal Government)
  2. Change Capital Gains Tax (CGT) discount from 50% from 12 months +, to a tier scale discount system: 0 - 12 months = 0% discount; 12 - 24 months = 25% discount; 24 - 36 months = 37.5% discount; 36 months + 50% discount. This policy should discourage speculative short term investment and encourage long term investment which is good for the economy. (Federal Government)
  3. Provide first home buyers of every state a 50% reduction in Stamp Duty on purchases of existing dwellings and a 100% Stamp Duty exemption on new dwellings. This assists first home buyers with one of the biggest hurdles / costs of entering the property market while still encouraging new property development. (State Governments).
  4. Change the land tax system from value based, to property number based. Land tax would apply from property no. 3 +, except from property no. 1 for foreign investors. Some thresholds would still apply.
  5. Create a new First Home Buyers Saver Account (FHSA) that is run similar to a superannuation fund, except for the sole purpose of assisting young Australians purchase their very first home. It should include the following features: 
  • Run by financial institutions, such as local banks. 
  • Ability to salary sacrifice up to $7,500 of your pre-tax annual salary (tax-free)
  • Ability to contribute up to $7,500 of your after tax savings (tax-free)
  • Ability to invest in cash or managed funds offered by the financial institution providers
  • Zero tax on investment earnings in the account
  • You (the account holder) must make contributions in three separate financial years before being eligible to withdraw the account funds for the sole purpose of your first home deposit or to go towards your first home mortgage. 

Stop giving investors more help than young Australian family first-timers!

Want to help make a difference? To support our campaign:

  1. Sign the petition below
  2. Share the petition on social media using #SaveGreatAustralianDream
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