Mortgages, Money and Me

First Home Buyer Super Saver Scheme

From 1 July 2017, saving for a home deposit should be easier with the introduction of a scheme that allows first home buyers to salary sacrifice into a super fund. This will deliver a tax saving which can go towards your deposit savings, with funds in the scheme taxed at just 15% instead of the usual marginal tax rates (which are currently as high as 45%).

The benefit comes from the ability to access these additional super contributions before retirement to put towards your home deposit. You’ll be able to put up to $15,000 per year into the scheme, capped at $30,000 overall. If you’re buying with a partner, you’re both entitled to that amount, bringing your total contributions to $60,000.

This could serve as a beneficial strategy for first home buyers looking to save up for their house deposit faster. By depositing a portion of your yearly income into the scheme for two-three years, you could avoid paying extra tax and put that money towards your new home instead.

While the scheme is targeted towards first home buyers, in certain cases the Commissioner of Taxation may allow previous home owners to access salary sacrificed savings if they meet the criteria for financial hardship.

What next?

This information is of a general nature only and does not take into consideration your personal circumstances. I would highly recommend that you speak with a Financial Planner before making any changes that involve Superannuation.