The 2017-2018 Federal Budget that was announced by the Treasurer Scott Morrison should be of interest to first home buyers who are saving for their first home.
To make the task of saving for their first home easier, eligible first home buyers will be able to divert their pre-tax income towards a special savings account. This will mean that saving a deposit will become a little bit easier.
From 1 July 2017, individuals can make voluntary contributions of up to $15,000 per year and $30,000 in total, to their superannuation account to purchase a first home. These contributions, which are taxed at 15 per cent, along with deemed earnings, can be withdrawn for a deposit.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.
For most people, the First Home Super Saver Scheme could boost the savings first home buyers 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.
Many employees will be able to take advantage of salary sacrifice arrangements to make pre-tax contributions. An example of potential savings for first home buyers can be viewed on the government website here.
If you are a first home buyer Perth Finance Brokers can assist you get pre-approval finance and we will deal with the lenders directly on your behalf, preparing your home loan application for approval, and managing the whole process from start to finish. We will come to you, home or office.