First home saver accounts

The Government will introduce enhanced First Home Saver Accounts to help families boost their savings for a first home, bringing home ownership within the reach of more Australians.

How does it work?

Following consultation, the Government has made the accounts fairer and simpler.
Australians will now receive a 17 per cent Government contribution on the first $5,000 of contributions made to their account each year. This represents an increase in the Government contribution for average wage earners from 15 to 17 per cent.

Earnings on the accounts will be taxed at a low rate of 15 per cent.

Withdrawals from the accounts will be tax free when used to buy or build a first home.
Helping people to save more will mean they need to borrow less for their first home. Lower levels of debt will place first home buyers in a more secure financial position when they are starting out.


You can open an account if you:
a are aged 18 or over and under 65;
a are an Australian resident for taxation purposes;
a have not previously purchased or built a first home in Australia to live in;
a do not have or have not previously had an account; and

Contribution arrangements:

There are certain contribution requirements if you are starting a first home buyer deposit saver account:
a Individual contributions will have an overall account balance cap of $75,000. These contributions may be made by the account holder or another party, such as an employer, on behalf of the account holder.
a Contributions have to be made from after-tax income.
a The Government will make an additional contribution which will be paid directly into the account, with arrangements broadly reflecting those for superannuation.
a The Government contribution will be made on up to $5,000 of individual contributions each year.
a The contribution level will be either 17 per cent, or the account holder's marginal income tax rate less 17 per cent, whichever is greater.
Individuals with incomes of up to $80,000 who contribute $5,000 to their account will receive a Government contribution of $850.
a For individuals on incomes above $80,000, the contribution will vary depending on the marginal income tax rate of the individual.

For more details visit the ATO >> 2008 Budget Overview.

If you want to know how much you can borrow, our supportive team has the GENUINE expertise, accreditation and experience to assist you with both home loans, car and business finance requirements.

Call Peter Earle today on (07) 3208 3888 or complete the above online enquiry form - we're ready to listen and give you the best possible advice on true rates, loan structure and service.

D Maynard
CEO My Tax Zone

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