First home buyers can now save their deposit even faster after the First Home Super Saver Scheme savings threshold was increased from $30,000 to $50,000.
The scheme lets first home buyers salary-sacrifice pre-tax income into a dedicated account within their superannuation fund – up to $15,000 per year and now up to $50,000 in total.
There are two ways in which the First Home Super Saver Scheme benefits first home buyers.
First, the money they deposit into the scheme is taxed at 15% rather than the income tax rate, 19% for someone earning up to $45,000 and 32.5% for up to $120,000.
Second, when first home buyers eventually withdraw their money, they’re allowed to withdraw their original deposit plus about 4.7% interest, which is a higher interest rate than they’d earn through a regular savings account. Withdrawals are generally taxed at the marginal tax rate minus 30 percentage points.
Find out more about incentives available to First Home Buyers in our article here.
Disclaimer:
Terms are subject to approved persons only. This information is true and correct as of 8/02/2022. All of the content above is general in nature and may not suit your personal needs, situation objective & goals.
