DashboardGrantsSuper Saver
Text Link
August 12, 2021

Super Saver

by 
This is some text inside of a div block.
State
Amount
Conditions
ACT
n/a
From July 1 2019, the FHOG ACT has been replaced with exemptions on stamp duty(see below section 1.5).
NSW
$10,000
To be eligible, your first home must have a total value below $600,000, and beeither newly constructed or ‘substantially renovated’*. If you plan to build a newhome from scratch, you can still be eligible as long as your land plus the home youbuild have a combined value of less than $750,000.
NT
$10,000
Your income and the price of your home don’t affect the FHOG NT, and the grant isavailable if you buy or build a new house, apartment, duplex or townhouse.
QLD
$15,000
To be eligible, you need to buy a brand new home or build a home from scratch withthe total value (including the land) below $750,000. You may also be eligible if youbuy off the plan or an established home that’s been substantially renovated*.
SA
$15,000
You are only eligible when you buy or build a brand new home, the grant is notavailable if you buy an established home. You can choose from a house,apartment, townhouse or villa, but you will only be able to claim the FHOG SAif you pay below $575,000 for your home.
TAS
$20,000
You are only eligible when you buy or build a brand new home, the grant is notavailable if you buy an established home. The FHOG in Tasmania is currentlyavailable until 30 June 2022. Off the plan purchases are also eligible. In Tasmaniathere is no limit on the purchase price and the grant is not means tested.
VIC
$10,000
The FHOG is available if you buy a newly built home or if you choose to build a homefrom scratch in Victoria. Your first home can be a house, townhouse, apartment, or unitbut it must be valued at $750,000 or less, and it must be a new home – being sold asa home for the first time, and less than five years old
WA
$10,000
You are only eligible when you buy or build a brand new home, the grant is notavailable if you buy an established home. However, a home that has beensubstantially renovated* may be considered a new home. There are limits on whatyou can pay for your first home to be eligible. If you’re located south of the 26thparallel, which basically covers all the Perth metropolitan area, you can claim theFHOG WA if your new home is worth up to $750,000 – this includes the value of theland plus buildings. If you buy or build a home north of the 26th parallel, the propertymust be valued up to or below $1 million.

*Substantially Renovated means all, or most, of the building, has been removed or replaced. As a guide,substantial renovations include replacing or altering foundations or replacing or altering floors.

First Home Super Saver Scheme (FHSSS)

he First Home Super Saver Scheme (FHSSS) helps Australians boost their savings for a first home by allowing them to build a deposit inside superannuation, giving them a tax cut.

The FHSSS applies to voluntary superannuation contributions made from 1 July 2017. These contributions, along with deemed earnings, can be withdrawn for a home deposit from 1 July 2018.

For most people, the FHSSS could boost the savings they can put towards a deposit by at least 30 per cent compared with saving through a standard deposit account as amounts saved through the scheme will only be taxed at 15% instead of your marginal tax rate, helping you purchase your first home sooner.

How the First Home Super Saver Scheme works
The FHSSS involves saving using your super account. Your employer pays 9.5% of your ordinary salary into your super account already. This is for your retirement, and you can’t access that before you retire for good in your 60s. Let’s call this “Account A”.

The FHSSS creates another savings account in your superannuation specifically for your ome deposit savings. Let’s call this “Account B”. In Account A your employer puts money in for your retirement. In Account B, you put your own money in for your first home deposit.

You pay less tax on your savings if you put them in Account B than if you just use an ordinary savings account.

‍
Eligibility

‍
You can release funds under the FHSSS if you are 18 or over, have not used the FHSSS before, and have never owned real property in Australia. You will be eligible if you meet all eligibility criteria, even if you plan to purchase with a partner who does not meet the criteria.

How much can you contribute? You can contribute up to $15,000 a year, and $30,000 in total, under the FHSSS. These contributions must be within existing contribution caps (e.g. the $25,000 per year concessional contributions cap).

How do you make contributions? Any voluntary contribution you make into your superannuation account can count towards your FHSSS balance. You may speak to your employer to set up a salary sacrifice arrangement, or you may make a personal contribution directly to your fund.

Will your contributions be taxed? Concessional contributions (e.g. salary-sacrificed) are taxed at 15 per cent in the fund, as usual. Any after-tax contributions are not taxed.

How will your contributions grow? You will be able to withdraw a deemed rate of earnings on top of your contributions. This deemed rate is set to the ‘Shortfall Interest Charge’, which was around 4.7 per cent last year. This deemed earnings rate is higher than typical deposit rates currently on offer from financial institutions.

When can you withdraw your savings?
From 1 July 2018, you can withdraw your savings when you are ready to enter the housing market. You do not need to have found your home yet, but you will need to buy a home within 12 months of withdrawal. You can ask the Australian Tax Office (ATO) to extend this to 24 months.

How will your savings be released?
The ATO will be able to tell you the maximum amount you can release under the FHSSS, and you can apply to them to release when you’re ready. Withdrawals are generally taxed at your marginal tax rate less a 30 per cent rebate. The ATO will arrange for money to be released from your super and will pay it on to you. They will withhold an estimate of the tax owed on the withdrawal amount. Visit https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/First-Home-Super-Saver-Scheme/ for more details.

What kind of home can you buy?
You must buy a ‘residential premises’ after withdrawing your savings. This includes vacant land (if you’re planning to build), but not any premises that can’t be occupied as a residence, and not houseboats or motor homes. It must become your home, not an investment property; you would have to occupy the premises for at least 6 months in the year after purchase (or construction).

What if you don’t end up buying a home?
If you don’t buy a home after your time expires, you may either contribute the released amount back into superannuation, or pay a tax equal to 20 per cent of the concessional amount

‍

Tags:
No tags found.

Other Grants

Family Home Guarantee

This new scheme announced in the 2021-22 Federalbudget allows single parents to be able to get a home loan with a 2% deposit, as the government’s scheme aims to support single parents with dependants (who are predominantly women) to enter or re-enter the housing market. Commencing on 1 July 2021, the Family Home Guarantee scheme will provide 10,000 places to eligible single parents over four financial years to 30 June 2025. Similarly, to the 5% deposit scheme, the family home guarantee is administered by the NFHIC and allows single parents to purchase an existing home or build a new property with a low deposit while avoiding LMI. Although this grant is not specifically for first home buyers, eligible first home buyers are able to apply.

First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme is a federal initiative from the Australian Government to assist first home buyers across Australia in purchasing their first home sooner. This scheme will do this by allowing first time buyers to pay a deposit as little as 5% without paying lenders mortgage insurance (LMI) saving up to $20,000 or more. LMI is an insurance that protects the lender, not you. It’s usually a one-off payment made by the borrower at the time of loan settlement to allow the lender to have confidence in offering you a home loan with less than 20% deposit. This scheme works as the government will underwrite the loans instead of the borrower.

Stamp Duty Concessions

Stamp duty is one of the upfront costs that apply when you buy a home or vacant land. It is a state government tax and thereforethe rates of duty differ. The amount you will pay for stamp duty will depend on where you are buying, and how much you pay for your home or vacant land. As stamp duty is a state government tax, the concessions on stamp duty will differ from state to state and can be provided with and without the FHOG in most cases.

There is a better way to
buy your first home

Links
Free Resources
How to indentify  property Hotspots?
National Prices Up 18.4%
Another story about a lovely office environment
© Buyer Ready Program 2022