Super savings for your first home
Are you looking to move on from your rental days and buy your first home, but struggling to save the deposit? Or maybe you’re still living with the ‘rents, saving every cent so you can own your own home. We understand your pain. These days it’s near impossible to save enough money for your first mortgage.
Despair no more, we have some great news that might bring you relief. You can now maximise your first home savings through super.
The Government’s First Home Super Saver (FHSS) Scheme is designed to help Aussies save for their first home inside their super account, taking advantage of the concessional tax treatment within super.
How does it work?
The FHSS Scheme allows first home buyers, who have never owned a property in Australia, to put extra contributions into their super account. These contributions can then be withdrawn and put towards a home deposit at a later date.
This can be done by making voluntary contributions into your super account. You can make salary sacrifice or after tax contributions and save for your first home faster.
How much can I contribute?
As a single home buyer, you could make voluntary contributions of up to $15,000 per year, and up to $30,000 in total to your super account.
Your employer contributions do not count towards the Scheme and contributions caps still apply. There may also be tax applied when you withdraw your FHSS contributions.
Is it right for me?
If you’re interested in taking advantage of the FHSS Scheme, start by checking your eligibility at the Australian Taxation Office (ATO) website.
If you would like to take advantage of the savings scheme and are eligible, all you need to do is make voluntary contributions into your AustSafe Super account.
For those who have already started saving, you will be able to apply to release your contributions on 1 July 2018. This can be done through applying to the Commissioner of Taxation for a FHSS determination and a release of your funds. You can visit the ATO website for more information.
Find out more
Source: Australian Taxation Office. First Home Super Saver Scheme (2018). www.ato.gov.au/fhss.
This editorial is general information only and does not take into account your individual objectives, financial situation or needs. You may also wish to seek the advice of a qualified financial planner. Please also read the relevant AustSafe Super Product Disclosure Statement (PDS) before making a decision in relation to the product available at austsafe.com.au which summarises important information about being a member of AustSafe Super.
Austsafe Pty Ltd ABN 96 010 528 597, AFSL 314183 is the Trustee of AustSafe Super ABN 92 398 191 503