The ‘First home super saver scheme’ allows you to save for a deposit for your first home using your super account. Our financial planning partner, Bridges, explains the benefit of saving within your super.
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.
How does it work?
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.
Who is eligible?
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.
How much can you save?
The maximum amount you can contribute is:
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:
Are you ready to take the next steps?
We have an established alliance with Bridges, to provide our customers with financial advice. Bridges has been helping Australians with financial advice for 30 years. A Bridges financial planner will develop a plan specifically for you; one that’s tailored to your needs and circumstances to help you achieve your goals.
To make an appointment with a Bridges financial planner, call 1800 645 303. The initial consultation is complimentary and obligation free.
Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL 240837. This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner or a registered tax agent. Examples are illustrative only and are subject to the assumptions and qualifications disclosed.
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In referring customers to Bridges, Illawarra Credit Union does not accept responsibility for any acts, omissions or advice of Bridges and its authorised representatives.