In the last article we covered all the upcoming changes to the First Home Guarantee Scheme (FHGS) that’s about to help more Aussies get on the property market. 

But did you know, the FHGS can be combined with other government schemes to help you reach your property goals even sooner? 

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First Home Super Saver (FHSS)

The FHSS scheme is designed to help first home buyers save for a deposit faster by making personal voluntary contributions into their super fund. 

Concessional contributions in super are only taxed at 15%, which is usually less than your marginal income tax rate. This allows you to save up more compared to saving outside of super. FHSS amounts also benefit from a 30% tax offset upon withdrawal - double win!

Let’s look at an example. 

Nicole earns a gross salary of $100,000 and wants to save $150 per week for her first home deposit. 

By using the FHSS, Nicole saves an extra $1,326 each year for her first home deposit!

However, some things you should be aware of:

• The FHSS has yearly ($15,000) and total ($50,000) contribution limits 
• Total yearly contributions still need to fall within concessional contribution caps ($30,000) 
• If you change your mind about buying a home, your savings will turn into super investments you can't access until a condition of release is met 

Stamp Duty Exemptions and Concessions

When you buy property there is a once-off government tax called ‘stamp duty’ you usually need to pay, and this tax increases based on the price of your property and the state you live in.

But if you’re a first home buyer, you may receive a total exemption from paying, or receive a discount depending on the value of your property and which state you’re buying in.

First Home Owner Grant (FHOG)

The FHOG is a one-time cash payment from the government, ranging from $10,000 to $50,000, that specifically helps first home buyers that are purchasing off the plan or a newly built home.

Similar to the stamp duty benefits, the grant varies by state where some have property value thresholds.

Although saving for your first house deposit can feel daunting, making smart money moves and maximising benefits from government schemes can help you reach your property goals sooner than you think! 🏠

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