First Home Buyer Super Saver Scheme explained

Why it is worthwhile and how to use it to boost your deposit.

BOOST YOUR DEPOSIT

Boost your deposit through tax savings, as additional super contributions are taxed at 15% + 2.5% on withdrawal vs your nominal income tax, between 32.5% and 45%.


UP TO $15,000 PER YEAR

Per individual you can add up to $15,000 per financial year to your First Home Super Saver Scheme. In order to receive the tax benefit it has to be voluntary additional employer contributions.

HOW IT WORKS

A $75,000 p/y salary 32.5% tax on income over $45,000. So $15,000 gross = net income of $10,125. Contributing that $15,000 through super loses 15% tax on entry & 2.5% on exit = $12,350, a $2,225 benefit.


Minimal benefit for income below $45,000.

$50,000 draw down max from July 1st 2022, per individual.

On $135k per year or more? Then the tax saving is $2,900.

Who does the First Home Buyer Super Saver Scheme suit?

Particularly useful for first home buyers who are multiple financial years away from their furst home purchase. Those on higher incomes over $120,000 will also get the bigger tax benefit per year.

First home super saver scheme release of funds

IF YOU HAVE ALREADY SIGNED A CONTRACT?

From contract signing you have 2 weeks to submit your Super withdrawal request, and should expect the 15 to 25 business days for the release of funds..

IF YOU DECIDE NOT TO BUY A HOME

You either need to put the money back into you super, or if withdrawing it permanently there will be a 20% FHSS Scheme tax.

IDEALLY HAVE YOUR DEPOSIT SEPARATELY

Expect 15-25 business days to be able to access the funds, so not ideal for using for a typical purchase deposit of 10% paid to the Real Estate Agent up front.

Back to first Home Buyer Guide

For further info click here for the Government ATO page

To discuss whether this could be beneficial to you

We now own our house thanks to you. We never thought it could be done and your advice and help throughout have made our dreams come true. We can’t thank you enough for all the work you have put in over the last 18 months, Ben. It has been a lot of work for you.

Thank you again!

Marne and Sam

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Joe

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Jessica