Here's the case study the government used to show off its new scheme that will allow first home buyers to save up to $30,000 in their superannuation accounts for a deposit on a house.
It's about Louise and Craig, who look quite taken by one another.
In the example in the government's Budget papers, Louise and Craig both earn $60,000 a year and are each able to "salary sacrifice" $10,000 every year from their pre-tax income into their superannuation accounts.
After three years the couple has $51,520 after-tax money for a housing deposit.
It raises the question: Is it realistic for an Australian on a $60,000 salary to save $10,000 each year?
(First thing to keep in mind, Louise and Craig will have to pay income tax on their now $50,000 pre-tax income, which shakes out to be $7,800 each.)
We asked people whether they thought Louise and Craig's situation was realistic.
@MarkDiStef Nah cunt. Not if they paid rent or lived in a city.
Of course the example doesn't reveal whether Louise and Craig are paying rent or living at home with their parents.
@MarkDiStef Maybe if they live with their parents and don't pay rent?
Some suggested that if you lived at home you could do it.
@MarkDiStef When I was saving on $60k I could do $500 a month and I had heaps of COL help from parents.
The cost of living is a lot higher in cities like Sydney or Melbourne.
@MarkDiStef I'm on $65k and have managed to put away $15k/year, but it was tight and I live in BNE. Can't imagine doing that in Syd/mel
The fact Craig and Louise will buy together is also very helpful to the entire situation.
@MarkDiStef Maybe Louise & Craig can do it, but it would be tough for Louise to be single in a capital city and do it.
However, even if Louise and Craig aggressively save and score the tax breaks for the $30,000, what could they get for it?
@MarkDiStef Under that scenario, Louise and Craig will be able to purchase a property worth $515,200. Not sure what… https://t.co/dicaYKfixr
Even if the couple now has $51,000 after three years, it's not enough to avoid needing mortgage insurance.
@ginarush @MarkDiStef Louise and Craig only need a little bit more ($80,000) and they can buy a run down house in E… https://t.co/V9Pf3HX63k
Of course, it's possible Louise and Craig will face increases in taxes and fees... like student debt loans?
@ginarush @MarkDiStef Assuming of course Louise and Craig's parents paid for their University and they have no HECS debt
Economics professor at the University of New South Wales, Richard Holden, told BuzzFeed News the scheme could actually drive up house prices.
"This is just like all the other silly first home owner type schemes," Holden said. "If this one works, then it will just drive prices up."
Holden said if the government was serious about battling the housing affordability crisis, especially in cities like Sydney where the median house price has topped $1 million, it would need to implement more severe policy measures to curb investor appetite for property.
Reflecting on Louise and Craig's situation, Holden said the government's case study is ambitious for someone renting in a major capital city.
"Part of the issue is, it’s not super cheap to rent either, and that sounds like a lot of pre-tax income to be saving."
If you want to see how much money you could save using the scheme, the government has launched an online calculator here.