Those looking to buy their first home can now get help saving for their deposit by taking advantage of the First Home Super Saver Scheme that was passed in federal parliament in December 2017.
What is the First Home Super Saver Scheme?
The scheme allows eligible individuals to make extra contributions into their superannuation account that can later be withdrawn and used towards a first home deposit.
The new scheme is not to be confused with the First Home Owner Grant (New Homes) scheme or the First Home Buyers Assistance Scheme, which are also available to help first home buyers break into the property market.
How does the scheme work?
First home buyers can make voluntary contributions to their superannuation account, to boost their savings for a home deposit. This allows first home buyers to save part of their deposit inside a lower-taxed environment.
A maximum contribution of $30,000 over two years can be made, with contributions capped at $15,000 a year. These contributions are then invested according to the individual’s super account instructions.
Only voluntary contributions can be used by the scheme. Compulsory contributions made by employers remain reserved for retirement.
When can you make withdrawals?
Any voluntary contributions made into a super saver account can be withdrawn anytime after 1 July 2018 through an application to the ATO.
Those making a withdrawal have up to 12 months once the funds have been released to sign a contract to buy or construct a home.
To find out further information about the scheme visit the ATO website.
For those looking for first home opportunities in the Mudgee region, contact McGrath Central Tablelands.