First home buyers across the north are being encouraged to take advantage of the Turnbull Government’s First Home Super Saver Scheme, which came into effect on 1 July, 2017.
Northern based Government Senator Ian Macdonald said the scheme, announced in this year’s Budget, will give first home buyers the ability to accelerate their savings by at least 30 per cent.
“First home buyers will be able to save for a house deposit within their superannuation by making voluntary contributions of up to $15,000 per year and $30,000 in total into their superannuation account,” Senator Macdonald said.
These contributions, which are taxed at the discounted rate of 15 per cent, along with deemed earnings, can be withdrawn for a deposit from 1 July next year. Withdrawals will be taxed at marginal tax rates less a 30 per cent offset, Senator Macdonald said.
“This initiative demonstrates the Turnbull Government’s commitment to reducing the pressure on housing affordability for residents in regional areas like the north, across the entire housing spectrum, including first home buyers.”
With many Australians entering the housing market later in life, this initiative will encourage first home buyers to save for a deposit more quickly, Senator Macdonald said.
Assistant Minister to the Treasurer, Michael Sukkar, said for most people, the First Home Super Saver Scheme will allow them to save for a deposit faster than saving through a standard deposit account.
“It is disappointing the Labor Opposition are refusing to support this tax cut for first home buyers, choosing to reject the generous tax concessions and instead implement a disastrous housing tax which will drive up rents, making it harder to save for a deposit.”
“In contrast, the Turnbull Government is delivering a comprehensive suite of measures to ease the pressure on housing affordability across the entire housing spectrum, including prospective first home buyers.”
Further information on the First Home Super Saver Scheme is available at http://www.budget.gov.au/2017-18/content/glossies/factsheets/html/HA_14.htm.
First home buyers can also get an indication of how the scheme can benefit them by visiting www.budget.gov.au/estimator.