30/08/2018
Hi all. Just a few days ago, we posted a link with the ATO's new "Super Saver Scheme" for for first home buyers. If you haven't had a chance to read it yet, we've gone ahead and written up a shot breakdown of exactly what it is and how it can help you.
The Australian Government has announced that from 1 July 2018 individuals will be able to apply to withdraw voluntary contributions deposited into their super fund after 1 July 2017 to increase a deposit for a first home.
Voluntary contributions include:
• Un-deducted (non-concessional) personal contributions
• Deducted (concessional) personal contributions
• Salary sacrifice contributions.
Only $15,000 of voluntary contributions made in a single year can be released.
The maximum amount of personal contributions that can be released is $30,000 to put towards your first home.
According to the Australian Taxation Office, there are three key things to remember regarding the scheme:
• “You can only apply for release once.
• Don't sign your contract to purchase or construct your home until after we have released your money or you may be liable to pay FHSS tax.
• After we have approved the release, it will take about 25 business days for you to receive your money.”
Income contributed to your superannuation are only taxed at 15%, instead of your standard rate which is usually considerably higher.
Concessional funds withdrawn from your Super will be taxed at your standard marginal rate, minus a 33% discount.
