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First Home Super Saver Scheme

The Government announced a scheme that will allow first home buyers to use superannuation as a means of saving to buy their first home. They will be allowed to salary sacrifice superannuation contributions up to $15,000 per year and $30,000 in total can be contributed within existing concessional contribution limits of $25,000 per annum.  

Voluntary contributions to superannuation made by first home buyers from 1 July, 2017 will be able to be withdrawn from 1 July, 2018 for a deposit on a first home, along with associated deemed earnings. Currently, withdrawals usually cannot be made from a superannuation fund until a person has reached 55 to 60 years of age, depending on their date of birth. These concessional contributions and the associated earnings (calculated on the 90 day Bank Bill rate plus 3%) can subsequently be withdrawn from the superannuation member’s account. On withdrawal, these funds will be taxed at marginal tax rates less a 30% tax offset.

In most circumstances, the net tax paid on contributions and earnings under the scheme would be 15% and the overall net tax benefit achieved for a first home buyer who contributes and withdraws the full $30,000 and who has a marginal tax rate of 39% (including Medicare levy) will be $4,500. 

Members of a couple will each have access to the scheme (taking this to potentially $60,000 in total). Self-employed individuals and employees who are not able to access salary sacrifice will be able to claim a tax deduction on personal contributions.

Click HERE to download the full edition of The Business Accelerator Magazine for June 2017

Other Articles in This Edition:

Some of the Biggest Mistakes Small Businesses Make With Their Websites 
Federal Budget – Economic Summary
Small Business - $20k Small Business Immediate Tax Deduction
Small Business - Company Tax Rates
Small Business - Extension of Taxable Payments Reporting to Courier and Cleaning Industries
Small Business - Access to CGT Concessions
Small Business - Looking to Employ Foreign Workers?
Individual Tax Rates
Individuals - Changes to the Medicare levy
Restricting Residential Investment Property Deductions
Individuals - Higher Education Reform  
Superannuation - Contributing Proceeds from Downsizing to Superannuation
GST Changes - Purchasers to Pay GST on New Residential Premises
GST Changes - Digital Currency & Low-Value Imports
Tax Integrity Measures

DISCLAIMER: This document contains general advice only and is prepared without taking into account your particular objectives, financial circumstances and needs.  The information provided is not a substitute for legal, tax and financial product advice.  Before making any decision based on this information, you should speak to a licensed financial advisor who should assess its relevance to your individual circumstances.  While the firm believes the information is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk.  The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.

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