First Home Owner, Super Saver Scheme
Saving for your first home? Then there is most definitely going to be a use of using the Super Saver Scheme.
Up to $15,000 can be made as a voluntary contribution annually that will count towards the amount that can be released. Super contributions for this are taxed at 15% initially. The maximum amount that can be contributed into the first home saver super account is $15,000 per annum and $30,000 in total per person.
When you withdraw for your home purchase you will be taxed again at applicable tax rate for that year, less a 30% offset.
To demonstrate the impact the Super Saver can have an example is below:
At a tax rate of 35%, if you deposited maximum of $30,000 into your super account over two years. The tax saving would be $30,000 x (35% - 15%) = $6,000. When you take the $30,000 out from your super fund, assume that you are still on a tax bracket of 35%.You will be paying tax of $30,000 x (35% - 30%) = $1,500. Overall, you would be gaining $4,500 ($6,000 - $1,500) plus earning and growth.