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Tony Abbott’s decision to reduce the paid parental leave scheme could damage the housing market, according to the FBAA.
The prime minister last week reduced the ceiling on his parental leave scheme from a maximum support level of $75,000 over 26 weeks to a maximum of $50,000.
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Chief executive Peter White said this would cause families – especially younger families – to think twice before committing to taking on a mortgage.
“While recognising that the government must look at measures to balance the budget, we are simply pointing out that a scheme like this also has the potential to stimulate the economy through allowing more families to own their own home,” he said.
“One of the biggest fears that families have is not being able to sustain mortgage payments while one partner is away from work caring for a new baby.”
Mr White also said the government needed to think carefully about housing confidence when preparing the Budget, which is due to be delivered on May 13.
“In this Budget, the government cannot afford to do anything that jeopardises confidence in the housing market, because so many industries and people are affected when this market slows,” he said.
