Are you currently saving for your first home and want some tax relief?
The Australian Government has created this scheme to help first home buyers save for a deposit on their first home.
To qualify, you cannot have previously owned a property in Australia. In addition, you can’t use the scheme to buy a houseboat, motor home or land.
How it Works
Each individual can contribute up to $15,000 a year into Super until you reach the maximum of $30,000. Once you have saved your deposit, you will be able to take a lump sum out of Superannuation plus a deemed* increase in value to be used as a home deposit.
This means that is possible for couples to have over $60,000 (original contribution plus *deemed increase in value) in savings at the end of the process to achieve finance.
The tax effectiveness for each person however depends on your current personal income tax rate, so you may need to speak to a specialist to work out how much tax you are able to save. 15% tax is payable on concessional contributions into Super.
To take the money out of Superannuation for your first home deposit you have to apply to the ATO.
*Deemed income is 4.7%.
This article is a brief introduction to this topic. To get more of the detail, please call Supervision or speak to your financial adviser.