Have you heard of the First Home Super Saver Scheme? If not, we are here to fill you in! The First Home Super Saver Scheme was introduced in the Australian Federal Budget for 2017-18, with the goal of reducing housing affordability. The scheme allows you to save money for your first home inside your superannuation fund. The scheme is suitable for first home buyers if:
• Your live or intend to live in the premises you are buying as soon as practicable.
• You intend to live in the property for at least 6 months of the first 12 months you own it, after it is practical to move in.
What are the benefits?
• Earnings that accrue on these amounts are taxed at only 15% in the fund which could be less than your marginal tax rate. The benefit of this is that it will boost your super savings.
• When eligible contributions are withdrawn from superannuation it attracts a favourable tax treatment.
• The First Home Super Saver Scheme provides a disciplined way of saving for your first home as your funds can only be released for that purpose.
• If the contribution amount is not used for a home deposit, you can retain the amount in your superannuation to build your retirement savings.
Contributions that can be withdrawn under this scheme must be voluntary. Voluntary contributions can be either concessional or non-concessional contributions. To find out more about the contributions you can make click here.
When asked about the Scheme Gerry O’Donnell, General Manager of Bluebay Home Loans, said “Check out the First Home Super Saver Scheme. For First Home Buyers it’s a smart way to help you in saving towards your deposit. It may just help you to reach your savings goals that little bit sooner, every little bit helps.” To find out more about the First Home Super Saver Scheme, click here.