Saving for Your First Home, Listen Up

Saving for your first home deposit can sometimes feel overwhelming – but thanks to the introduction of the ‘First Home Super Saver Scheme’, locals will be able to save for their deposit faster.

“This is great news for locals; instead of paying tax, they will be able to salary sacrifice up to $15,000 per year straight into their superannuation”, Luke Howarth MP, Federal Member for Petrie said.

The growing trend is that Australians are entering the housing market later in life than previous generations. Due to house prices being high, difficulty saving a deposit has been an issue for many when it comes to trying to crack the housing market.

“For example someone earning $60,000 will be able to salary sacrifice $15,000, bringing their taxable income to $45,000 per year – saving them $5,759 in taxes over two years”, Mr Howarth said.

For most people, the First Home Super Saver Scheme could boost their savings that they can put towards a deposit by at least 30%, when compared with savings through a standard deposit account.

“It’s also like a forced savings plan as individuals cannot withdraw their money for any other reason than buying their first home or retiring”.

From 1 July 2018, first home buyers will be able to withdraw voluntary superannuation contributions they’ve made since 1 July 2017, along with any interest they have earnt to help buy their first home.

“The bottom line is, this is a super saver scheme; rather than paying tax on your heard earnt dollars, it will go towards your first home deposit” said Mr Howarth.

If you would like more information about the First Home Super Saver Scheme, contact Luke Howarth’s office on 07 3284 8008 or email luke.howarth.mp@aph.gov.au.