Super saver scheme to assist young home buyers
The Australia Government announced a new initiative in the 2017-18 Federal Budget, which is aimed at helping to reduce the pressure of housing affordability.
The First home super saver (FHSS) scheme allows Australians to save money for their first home inside their chosen superannuation fund. This will help speed up the process of saving for a first home deposit with the concessional tax treatment of super.
First home buyers (who meet eligibility requirements) can apply to have a maximum $15,000 of their voluntary contributions from any one financial year included in eligible contributions to be released under the FHSS scheme, up to a total of $30,000 contributions across all years.
There are two types of voluntary contributions that individuals should be wary of:
- Voluntary concessional contributions – including salary sacrificing amounts or contributions for which a tax deduction has been claimed. These are taxed at 15 per cent
- Voluntary non-concessional contributions – these are made after tax or if a tax deduction has not been made.
While aimed at helping first home buyers enter the market, there are some instances in which individuals who have previously owned property in Australia can still apply for the FHSS scheme.
Thankfully, AMD can help explain everything you need to know.
Feel free to contact a member of our Superannuation team to discuss the First home super saver scheme.
Information courtesy of the Australian Tax Office.