Savings accounts for first home buyers 'unpopular'

Friday 23 July 2010

Article by Mozo

The federal government’s first home saver accounts scheme has helped fewer people than was first planned, it has been revealed.

Documents obtained by the Seven Network under freedom of information legislation show that only a small amount of the $1 billion fund has been used to support first home buyers, the AAP reported.

Indeed, while the fund, which was launched two years ago, aimed to create 750,000 first home saver accounts, the documents reveal that so far only 15,300 have been set up, with $40 million spent.

They also show a general lack of enthusiasm for the scheme, with the Treasury commenting: "No one uses it."

The revelations suggest more first home buyers should look to compare savings accounts in search of better options. Prime minister Julia Gillard has conceded that demand for the government’s first home saver accounts has been much less than expected, the AAP said.

"Yes there are times when you have got a demand driven program but actual demand is less than that," she commented. "There’s no mystery about that."

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