It’s certainly tough saving enough deposit for your first home.
The government’s First Home Savers Scheme (FHSS) initiative is one way you can access concessional tax savings to help boost your savings.
It’s not for everyone, and there are quite a few rules which are all on the ATO website, but in a nutshell…
If you are a first home buyer, you can voluntarily contribute some of your salary to your superannuation fund.
The benefit for you is that the tax that the superannuation fund pays on the salary sacrificed amount is less that the income tax you would have paid if you had received your salary as cash.
Once you have saved enough to start the house hunt in earnest, you can apply to your super fund to release your excess contributions to put towards the purchase.
Things to consider:
– Check that your superannuation fund will allow you to release your savings
– Not all employers offer salary sacrifice arrangements
– You can release a maximum of $15,000 per financial year (a maximum total of $30,000)
– You have to purchase within 12 months of the release
– The savings released will be added to your taxable income
(information sourced from Australian Taxation Office website October 2019)