Finding it hard to save up enough cash for the deposit on your first home?
A new federal initiative that you may not have heard about is the First Home Owner Saver Account. See www.firsthomesaver.com.au.
Now due to be launched on 1st October 2008, First Home Saver accounts are designed to help first home buyers boost their savings for a home deposit through tax concessions and Government contributions.
Even better, Treasury have confirmed that First Home Saver accounts can be aggregated. What does this mean? Well, you can get together with your friends and family and join your loan accounts together!
Practical Example
Two mates each earning average incomes and putting aside 10 per cent of their money into a First Home Saver Account, could save a deposit of more than $85,000 after five years of disciplined savings. This is up to $14,000 more than they would have saved otherwise.
The detail: Government contributions
- The first $5,000 of savings made to a First Home Saver account in any year will attract an extra Government contribution of between 15% - 30% of those savings.
- The percentage the Government tips in will depend on the account holder’s marginal income tax rate.
|
Account holder's Income Range |
Marginal income |
First Home Saver Government contribution rate |
Maximum benefit on $5,000 of individual contributions |
|---|---|---|---|
|
$1 – $6,000 |
0% |
15% |
$750 |
|
$6,001 – $30,000 |
15% |
15% |
$750 |
|
$30,001 – $80,000 |
30% |
15% |
$750 |
|
$80,001 – $180,000 |
40% |
25% |
$1,250 |
|
$180,001 and over |
45% |
30% |
$1,500 |
For example, an individual on a marginal tax rate of 30% who contributes $5,000 to their First Home Saver account will receive a $750 bonus from the Government (15% of $5,000).
For more information about First Home Owner Saver Account and how PodProperty can help download our Guide today!
Useful Links:
What about the First Home Owner's Grant?
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