First Home Super Saver Scheme
The First Home Super Saver (FHSS) Scheme is a new way to help you save for your first home through your super fund. You can use the concessional tax treatment of super– meaning you pay less tax on the money you’re saving for a deposit.
Catholic Super members may now apply to have their voluntary contributions released for the purpose of purchasing their first home. For more information on eligibility, contributions and how to apply, please read our fact sheet.
Boosting Michelle and Nick's first home deposit
- Michelle earns $60,000 a year and wants to buy her first home.
- Using salary sacrifice, she annually directs $10,000 of before tax income into her super account, increasing her balance by $8,500 after the contributions tax has been paid by her fund.
- After three years, she is able to withdraw $27,380 of contributions and deemed earnings on those contributions. Her withdrawal is taxed at her marginal rate (including Medicare levy) less a 30 per cent offset.
- After paying $1,620 of withdrawal tax she has $25,760 that she can use for her deposit. Michelle has saved around $6,240 more for a deposit than if she had saved in a standard deposit account.
- Michelle's partner Nick has the same income and also salary sacrifices $10,000 annually into his super account over the same period.
- Together they have $51,520 that they can put towards a deposit, $12,480 more than if they had saved in a standard deposit account.
*Source: The Australian Government Fact Sheet 1.4 First Home Saver Scheme Budget 2017.
Need to find out if this could work for you?
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