Tax Savings Strategy 214 – First Home Saver Scheme

Tax Savings Strategy 214 – First Home Saver Scheme

first home

From 1st July 2017, taxpayers can contribute up to $15,000 per year in voluntary contributions (up to $30,000 in total), that can be withdrawn for a first home deposit. The contributions must be made into their superannuation account and be within an individual’s existing contribution caps. The contributions and earnings are both taxed in the super fund at 15%. Both members of a couple are able to access the scheme and combine savings for a single deposit.

From 1st July 2018 onwards, the individual will be able to withdraw these contributions and associated earnings for a first home deposit. Withdrawals will be taxed at an individual’s marginal tax rate, less a 30% tax offset. If an average wage earner on $80,000 a year uses the scheme over two years, saving $15,000 a year, they will save $5,000 in tax (or $10,000 for a couple).

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