A boost for younger Australians seeking to buy a home will apply from July 1. For those who have previously struggled to save a deposit, the Federal Budget might just get them over the line.
The First Home Super Saver Scheme allows first-home buyers to salary sacrifice up to $15,000 per year of their wages into superannuation and accumulate up to $30,000 within a super account that can be withdrawn for the sole purpose of purchasing a home to live in.
The benefit is that for those earning $50,000 per year, for example, rather than pay tax at 34.5% marginal tax rates, they can salary sacrifice up to $15,000 per year into super which is taxed at 15%.
When they buy a property, the money is released from super and, although included as personal taxable income, there is a 30% tax offset which cancels out most of the tax when withdrawing the money.
Terry Ryder – hotspotting.com.au
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