The First Home Super Saver scheme explained
See how it could help you save faster and smarter.Australia’s younger generations are finding it more and more difficult to save enough money for a deposit to enter the property market. House prices continue to rise, while wages don’t; making saving extremely hard. In 2017, the Australian Government introduced the First Home Super Saver (FHSS) scheme, with the aim of helping young Australians save for a deposit. Discover how it works, and if it could be the right option for you.
What is the First Home Super Saver scheme?
The FHSS scheme enables people to save money for their first home inside their super fund. With the concessional tax treatments of superannuation, the scheme will help first home buyers save for a deposit faster.
People can boost their superannuation contributions by up to $15,000 a year and $30,000 in total on top of the regular 9.5% super contribution, also known as Super Guarantee. Contributions to the scheme were enabled in 2017, and are still ongoing today.
Will the First Home Super Saver scheme help?
Saving for a deposit is tough — especially for first home buyers. This scheme will provide a helping hand for entry-level buyers. For first home buyers in a couple, this scheme can be very beneficial – a couple could save up to $60,000 through the FHSS scheme.
While the scheme doesn’t address the major issues and other barriers of homeownership for younger generations, it is a step in the right direction.
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