Rudd offers pre-tax savings for first homebuyers

The Federal Labor party is considering a plan that will enable first home buyer families to divert pre-tax earnings into identified accounts, to assist them in saving for a home deposit in a scheme similar to superannuation. Today, the Opposition Leader Kevin Rudd is set to launch an opposition policy that will outline the framework behind the plan that would operate in a low tax low overhead environment and generate higher returns than ordinary savings accounts. Mr Rudd placed the issue of Home Affordability firmly at the feet of the Liberal government saying “The decline in affordability and shortage of home is the result of a lack of leadership and innovation over the last 11 years at the Federal level by the Howard Government”.