First Home Super Saver Scheme – What is it?
In this How To session, I want to talk about the 2017 Federal Budget. Treasurer Scott Morrison has announced a First Home Super Saver Scheme. Now, this Saver Scheme is all about trying to help first home buyers save for a deposit. Let’s look at how it works. Effectively what you can do is, you can salary sacrifice into your super a maximum of $15,000 per year from 1 July 2017. That money is going to obviously sit in your super account and earn investment returns. When it’s going in, it’s only taxed at 15 cents in a dollar. Usually, our marginal tax rate is around 30% so this is money going in. You are getting a tax saving on the way in the door, and that’s allowing the money to build up so you can save for a deposit. Each individual meaning you and potentially, if you have a partner, can also save this.
Now, it’s to a maximum of $30,000, and you can’t access the money until the 1st of July 2018. So we are not going to see a flood of new buyers coming into the market that is going to push market prices higher. It’s really good because each household is going to have to sit down and consider how much that they can actually put away. But if you are putting your money away to save for a deposit, I would highly recommend you use this vehicle. Based on Government’s estimates, they are talking about a 30% quicker rate of saving. So that means you can save a deposit quicker and hopefully, get into you first home sooner. If you need further information on this, follow the link below.
For more information on the Scheme, please click here.