It’s not as ROSY as it sound

FHSSS or First Home Super Saver Scheme was given a green light in late 2017 which means that First Home Buyers can tap in to their superannuation to pay for the deposit towards buying their the First Home. Since the announcement of the scheme a lot of our clients have approached us assuming that they can simply draw on their super and pay towards the deposit on their First Home BUT that is not what this scheme is!

You cannot just simply tap in to the compulsory super contributions of 9.5% made by your employer! The scheme, in fact, allow you to make additional contributions in your super account, on top of the compulsory 9.50% employer contributions, of up to $15,000 a year and total of $30,000 maximum to buy your first home. The benefit is that this amount is only taxed at a flat rate of 15% rather than your usual income tax rate which might be higher in most cases.

Will this be really beneficial for First Home Buyers?

Well, we don’t see it making a huge impact in most cases and the only advantage that we see is a tax saving of few thousand dollars over the period of 2 years, and that too if you are subject to a higher tax rate than 15%.

When buying a house, make an informed choice and an achievable plan armed with all the information that is relevant to you. Don’t hesitate to get in touch with us at 1300 200 003. We will be happy to guide you through the journey.