Anyone who has bought their first home will tell you that it can be a tricky thing to save a deposit – it can almost seem like an overwhelming goal to reach 15 or 20% of your purchase price. The good news is that the Australian Government has implemented a First Home Super Saver Scheme to help you get into your own place sooner. Here are the three important things you need to know about the scheme.
- You may be eligible right now.
Haven’t bought property in Australia before? Planning to live in your new home? Then chances are good that you’ll be eligible for the First Home Super Saver Scheme (FHSSS). This scheme is designed to make it easier for Aussie first home buyers to get their foot in the door by making voluntary contributions to their superannuation fund. There are a few criteria to apply:
- You can’t have previously owned property in Australia
- You cannot have released FHSSS funds before
- You either live or intend to live in your new home as soon as practicable
- You plan to live in the property for at least six months of the first 12 months you own it.
- You can contribute up to $15,000 per year and $30,000 in total.
By making voluntary contributions to your superannuation fund, you could save your deposit faster – and potentially minimise your tax while you’re at it. You can contribute up to $15,000 per year under the FHSSS, up to a total limit of $30,000. Depending on your income and situation, making concessional contributions could mean that you come out in front – both in paying less income tax, and paying less tax on your deposit savings. Of course, we’d always recommend getting financial advice for your individual circumstances to make sure the saver scheme is right for you.
Once you find the perfect property for sale in Mackay, you’ll simply need to apply and wait to have your FHSSS funds released into your bank account before signing your contract. This can take up to 25 business days. Keep in mind that your FHSSS funds can only be released after you turn 18, and you can apply for release once (with some rare exceptions). Once your funds are in your account you’ll have 12 months to use them for a deposit; otherwise you could end up paying significant FHSS tax.
It’s easy to get started.
The Government’s first home buyers super scheme aims to make it easy to save your deposit. Getting started is really as simple as making contributions into your super account, but before doing it’s important to:
- Check that your super fund will release the money
- Ensure your super fund has your correct details to match your ATO information
- Ask your super fund about any applicable fees, changes and insurance implications
- Assess the implications for your tax year, as the FHSS amounts will need to be declared – again, it’s wise to speak with your accountant or financial advisor about this.
And there’s more great news! If you’re buying or building at Plantation Palms you can also apply for the Queensland First Home Owners’ Grant, which offers $15,000 towards the cost of a new home and land up to the value of $750,000 – you can view the eligibility criteria for the grant here. That’s in addition to stamp duty concessions for first home buyers, if you’re eligible.
For all the details on the First Home Super Saver Scheme head on over to the FHSSS information page. The helpful team at Plantation Palms is always here to make it easy to get into your brand-new Mackay property.