What you need to know about the First Home Super Saver Scheme
Recently the government has put forward new policies designed to help first home buyers break into the housing market. The ‘First Home Super Saver Scheme’ is one of these policies, but how does it work?
Under the policy, first home buyers will be able to withdraw up to $30,000 of voluntary contributions from their super to put towards a first home deposit. In order to meet the criteria, you need to voluntarily contribute the $30,000 (for example salary sacrificing $10k a year over three years – also with additional tax benefits), before you are able to withdraw this money towards your first home. Merely having $30,000 in your superannuation account does not make you eligible. The amount of voluntary contributions that can count towards this is capped at $15,000 per financial year and any contributions made pre-tax will be taxed at 15%, while withdrawals will be taxed at marginal rates less a 30 percent off set.
First home buyers who have made voluntary contributions to their super will be able to withdraw them come 1st July 2018, but only those contributions made after the 1st of July 2017. Anyone who withdraws will then have 12 months to sign a contract to purchase a home or if no contract is signed they can either apply for an extension or re-contribute it back into their super.
While this policy is still in its draft stages and has not been put into legislation yet, it could go a long way towards helping people break into the property market for the first time.
Whether or not this scheme is right for you can be a difficult decision, speak to one of our financial advisors today and let them help you make the most of your money.