Scott Morrison has been called a ‘hypocrite’ for his criticism of the Labor Party’s homeownership scheme because its loan policy works the same way.
Prime Minister Scott Morrison has been branded Australia’s ‘biggest hypocrite’ for describing parts of the Labor Party’s home ownership scheme as ‘nonsense’ because the exact same rules apply to his own scheme loans to retirees.
Under Labour’s new plan, families can get a reduced mortgage in which the government takes a stake of up to 40% in the family home, but the estate must settle the debt or sell the property to repay the government’s share if the owner dies. .
However, under the Prime Minister’s Retirement Loan Scheme – now renamed the Home Equity Access Scheme – grieving families must also pay – to the bank – within 14 weeks.
“Australia’s biggest hypocrite has struck again. Not only has it acquired shared shares in the past, but it has its own similar scheme for retirees and seniors,’ Labor Housing spokesman Jason Clare said. news.com.au.
“And when you die, your loved ones only have 14 weeks to pay (the debt) or sell.”
The reverse mortgage offered by the federal government allows borrowers of retirement age to receive a semi-monthly tax-free income stream.
However, Mr Morrison attacked Labour’s own plan this week as ‘foolish’, warning the Labor leader would put up ‘for sale’ signs.
“If your salary exceeds, you know, your household income exceeds $120,000 a year, Anthony Albanese will put a for sale sign on your lawn,” Mr Morrison said.
“You actually have to dispose of the asset and repay the government. I mean, it’s crazy.
It was a line of attack that Housing Minister Michael Sukkar also deployed during an interview with 2GB radio host Ray Hadley.
“In the case of a person who inherits property from their parents, if they don’t qualify for the scheme, they will be forced to sell, and the Commonwealth will take their 40% share, which is essentially a charge on the death of your parents,” Mr Sukkar said.
However, Labor says the argument is ridiculous when the Prime Minister’s own home equity access scheme also requires debts to be settled on death.
“If there is an outstanding loan after you die, we will generally seek payment from your estate after 14 weeks,” the rules say.
“We may defer reimbursement if your surviving partner is both: Age Retirement age or older
and living in real estate used as collateral.
Mr Morrison argued that the equity capital schemes he has promoted involve banks – not the government.
“Well, I had no plan for a government to own people’s homes,” he said.
Family and Social Services Minister Anne Ruston said no one was obliged to repay the loan within 14 weeks.
She said the estate is simply notified from 14 weeks of the existence of the debt, and repayment of the loan is the responsibility of the estate, which can take some time to settle.
“Jason Clare should spend less time writing zingers and auditioning for direction and more time on his own policies, which might as well have been written on the back of a napkin,” Ms. Ruston fired back on Wednesday.
“Unfortunately, this utterly incompetent Labor Party has no idea of the details of any policy – including their own hard-selling scheme.
“These are completely different patterns – Jason Clare can just as easily compare fresh apples with rotten oranges.
“The Home Equity Access Scheme is for Australian seniors who already own their homes to access cash using the equity in their property.
“Most importantly, the government does not benefit at any time from the increase in the capital value of the property.
“We are not forcing the sale of the property. The Labor plan is for Anthony Albanese to own 40% of your home from day one and never let you build up the equity in the first place.