"Costello shoots down NSW super plan"

Ninemsn website 17:52 AEDT February 15 2005

Treasurer Peter Costello has shot down plans by the NSW government to let first homebuyers dip into superannuation to help them fund a home deposit.

NSW Housing Minister Joe Tripodi urged the federal government to change commonwealth superannuation rules to give first homebuyers access to their superannuation.

The plan would require a relaxation of the Commonwealth superannuation preservation requirements and would give homebuyers access to a maximum of $25,000 out of their superannuation fund for a deposit on a home.

Mr Costello told parliament that if the NSW government was so concerned about homebuyers it should do something about the tax burden when buying a home.

"The NSW government has a new concern about the level of the property market in NSW," he said.

"Can I say the whole of the NSW budget runs flush on the property market of NSW."

Mr Costello said in 1994 the NSW government collected land taxes worth $510 million.

"Ten years later ... land tax had gone to $1.35 billion."

Mr Costello said when the Carr government came to office the funds collected from stamp duty totalled $1.09 billion while it was collecting $3.9 billion in stamp duties.

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