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The ‘First home buyer super saver scheme’ allows you to save for a deposit for your first home using your super account.
The benefit of saving within your super is the concessional tax treatment of super which can help you save faster compared to a traditional savings account.
From 1 July 2017, you can make your own concessional and non-concessional contributions into your current super account to save for your first home. There is no need to open a special super account.
From 1 July 2018, you can apply to the ATO to release these contributions, along with the earnings on the contributions, to fund the purchase of your first home when you’re ready.
To be eligible you must:
Money that can be released from your super account includes:
Note: The non-concessional contributions must be released before any concessional contributions. Also, super guarantee contributions, spouse contributions and government co-contributions cannot be released.
The maximum amount you can contribute is:
This means a couple saving for a first home could contribute up to $60,000 together.
While the non-concessional contributions can be paid tax-free, all associated earnings plus any concessional contributions in a withdrawal will be taxed at your marginal tax rate. But, with a 30 per cent tax rebate from the government this considerably reduces your overall tax liability.
This scheme can benefit you if you make salary sacrifice or personal deductible contributions by:
If this scheme interests you, please speak to your financial adviser to find out whether it’s right for your circumstances.