It was announced in the 2017/18 Federal Budget that eligible first home purchasers will be able to use the advantages of super to save for their home deposit.
The First Home Super Saver Scheme
The Government is allowing first home buyers to make voluntary contributions into super in order to save for a home.
First Home Buyers will be allowed to contribute up to $15,000 per financial year and $30,000 (over two years) in total from 1 July 2017.
From 1 July 2018 First Home Buyers will be able to apply to withdraw any voluntary contributions that they have made to their super for a deposit on their first home. The maximum amount that can be released from super is $30,000.00 of personal contributions, plus an associated deemed earnings amount.
There are many benefits, one of which is that by making these contributions by salary sacrifice, it may allow people to generate savings using super’s concessional tax rates.
Any withdrawals from a super fund will be subject to approval from the Australian Tax Office and will be taxed at the relevant marginal tax rate, less a 30% tax offset.
Time to get saving for your first home!
Speak to your Super Fund or read more here