Brighter Buying

Federal budget turbo charges first home buyer savings by up to 30%

by Karleen Jentz, Copywriter 12 May 2017

The Federal Budget released this week has announced a plan to help first home buyers turbo charge their savings by allowing them to build a deposit inside their superannuation.

Is this the same as using your super to buy your first home? No.

But it allows you to piggyback on your super by salary sacrificing home deposit savings into your super account.

Deposits will receive the same favourable tax treatment as super going into, and coming out of, your super account, leaving savers about 30 per cent better off than a typical savings account.

Here’s how the government describes the First Home Super Saver Scheme:

“From 1 July 2017, individuals can make voluntary contributions of up to $15,000 per year and $30,000 in total, to their superannuation account to purchase a first home. These contributions, which are taxed at 15 per cent, along with deemed earnings, can be withdrawn for a deposit. Withdrawals will be taxed at marginal tax rates less a 30 per cent offset and allowed from 1 July 2018.”

So the dollars you put in this year will have worked harder for you when you take them out next year, or thereafter.

Critics have been quick to point out a $30,000 deposit won’t get you much in Sydney, but here in Brissie it will make a bigger dent in the first home owner deposit.

Of course there’s fine print, so check the full details on the budget website.

Got your savings sorted? View our current listings for sale.

Still saving? Check our listings for rent.