First home super saver scheme
First home buyers can take advantage of the Government’s First Home Super Saver Scheme, which came into effect on 1 July. The scheme will give first home savers the ability to accelerate their savings by at least 30 per cent. First home buyers will be able to save for a house deposit within their superannuation by making voluntary contributions of up to $15,000 per year and $30,000 in total into their superannuation account. These contributions, which are taxed at the discounted rate of 15 per cent, along with deemed earnings, can be withdrawn for a deposit from 1 July next year. Withdrawals will be taxed at marginal tax rates less a 30 per cent offset.
With many Australians now entering the housing market later in life, this initiative will encourage first home buyers to save for a deposit more quickly. Further information on the First Home Super Saver Scheme is available at: http://www. budget.gov.au/2017-18/content/glossies/factsheets/html/ HA_14.htm. First Home Buyers can also get an indication of how the scheme can benefit them by visiting: www.budget.gov. au/estimator.