First home buyers super savings
First Home buyers are set to receive a boost to their home saving options as the Turnbull government’s plan for a First Homebuyer Super Saver Scheme (FHSSS) passed the parliament, and older Australian are allowed to contribute money from the sale of their family home into superannuation.
In a press release from the federal Minister Assisting the Treasurer, Mr. Michael Sukkar said,
“The Parliament has today passed key elements of the Turnbull Government’s housing affordability plan, giving first home buyers a tax cut by allowing them to save for a deposit inside superannuation through the First Home Super Saver Scheme (FHSSS), and allowing older Australians to contribute the proceeds of the sale of their family home into superannuation.
“Through the FHSSS, individuals can contribute up to $30,000 (up to $15,000 a year within existing caps) into superannuation. This means an eligible couple could contribute up to $60,000, supercharging their deposit savings. Most first home buyers will be able to accelerate their savings by at least 30 per cent using the Scheme.
“The FHSSS provides a much-needed tax cut to young Australians saving for their first home.
“From 1 July 2018, first home buyers will be able to withdraw voluntary superannuation contributions they’ve made since 1 July 2017, along with a deemed rate of earnings, to help buy their home.
“This will give first home buyers a significant leg-up towards saving their deposit, helping them overcome a key barrier for getting into the housing market.
“The downsizing measure removes a financial obstacle from older Australians who are considering moving to homes that better suit their needs.
“From 1 July 2018, when Australians aged 65 and over sell a home they have owned for at least 10 years they may contribute up to $300,000 from the proceeds into their superannuation accounts, over and above existing contribution restrictions.
“Both members of a couple may take advantage of this measure, together contributing up to $600,000 from the proceeds of the sale into superannuation. This will encourage older Australians, where appropriate, to free up homes that no longer meet their needs for younger growing families.
“The measures legislated today are part of the Turnbull Government’s comprehensive approach to housing affordability. The Turnbull Government is continuing to deliver on its commitment to ensure all Australians have access to secure, stable and affordable housing.
“Labor stand condemned for their failure to support the Government’s tax cut for first home buyers. Labor’s absolute refusal to help first home buyers save for a deposit show they can’t be trusted on housing affordability.”, the minister’s office said.
The Queensland Labor government’s $20,000 first home owners grant is expected to continue until June 2018, on the basis that it was part of the government’s 2017 election campaign promise.
Free Subscription Offer
How to stay up-to-date
Do you have an opinion about the federal government superannuation saving plan for first home buyers?
The TREN community wants to hear your story.
Become a subscriber to TREN eMagazine and be the first to receive local breaking stories, analysis and opinions on the Townsville real estate market.