Get in the know – what the budget update means for first home buyers…
So, you’ve heard all the hype, but how will the Federal Budget changes for 2017/18 have an affect on buying your first home?
WA Housing Centre are here to explain the government update in more detail, and give you a better understanding of what the changes will mean to your property ladder journey.
The ins and outs of the housing affordability package
The government, like WA Housing Centre, understands how hard it can be to save up a deposit for your first home, especially when you still have rent, bills and general outgoings to pay. Therefore, the new affordability package was introduced to help with just that…
So within this year’s budget, the government has included a housing affordability package designed to help first home buyers with their savings. If you are legible, you’ll now be able to accelerate your savings towards a deposit by salary sacrificing into your superannuation account over and above your compulsory contributions. This amount is capped at $15,000 a year and $30,000 per person (or $60,000 per couple.)
This scheme gives you the option to save at a quicker rate, by boosting the savings you can put towards a deposit by at least 30 per cent compared with saving through a standard deposit account. This is due to the concessional tax treatment and the higher rate of earnings often realised within superannuation.
The First Home Super Saver Scheme facts:
- Contributions will be allowable from 1 July 2017
- Contributions are taxed at 15 per cent, along with interest earned, can be withdrawn for a deposit
- Withdrawals will be taxed at marginal tax rates less a 30 per cent offset and allowed from 1 July 2018
- Available for construction
Do you qualify?
Whether you are a single or a couple looking to build up your deposit, you can both take advantage of this saver scheme. The scheme has a number of generalised regulations regarding age and earnings, with details soon to be released.
See how much you could save:
The Government’s First Home Super Saver Scheme estimator allows you to work out the potential benefits you could make. It compares outcomes of savings using your annual pre-tax contributions.
Got any questions?
If you need more information, or have a query that wasn’t answered in this article, simply give our expert team a call – they’ll be happy to help!
Get into your own home sooner
So, if you’ve been struggling to save up a deposit, this could be exactly what you’ve been waiting for! As of July, you’ll be able to start contributing more earnings to your super – it’s time to watch your savings rise!