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How You Can Use Your Super to Save for a Home Deposit
By: Chan & Naylor
Under the recently legislated First Home Super Saver (FHSS) scheme first home buyers can make Super contributions up to a maximum of $30,000 over more than one year. Given the generous tax regime for Super investments, this investment can provide a handy return for those saving for a new home.
Let's assume you make a concessional (before-tax)
At the time you withdraw your savings, which must be from 1 July 2018 at the earliest, those savings will be taxed at your marginal tax rates less a 30 per cent tax offset.
If you want to get an idea of how much you can save for your home in this tax-efficient manner, you may want to use the government's handy calculator www.budget.gov.au/
But, while the FHSS is generous, it is fairly complicated.
• So that you can compare this with saving your regular salary, you will need to understand your gross and net salaries
• You will need to arrange with your employer to salary sacrifice super contributions – to show the banks that you can be a regular saver
• Its important that you know if your Super Fund is set to handle FHSS contributions
• You will need to get use to working with the Tax Office as the process of transferring the first home savings from your Super fund is not that straight forward
The First Home Super Saver Scheme is a generous new means of helping first-home buyers can their foot on the property ladder. If you want to get more information on how it can assist you getting your home loan, please call me on 1300 30 67 67.