Buy your first home faster with the First Home Super Saver Scheme

Looking to buy your first home? Here is how you may be able to boost your deposit by more than $8,000 by simply saving for it within your super with the First Home Super Saver Scheme (FHSSS). *

Assuming an annual income of $85,000, If you salary sacrificed $15,000 per year for three years and then $5,000 on the fourth year to save for your home within your super, you would only be paying 15% tax on those savings, as opposed to your marginal rate of 32%, saving you 17% in tax, or $8,500.

Another way to use this is by making a lump sum contribution of $15,000 in June, then another $15,000 in July, saving you a total of $5,100 in tax.

Scenario 1: Contribute 50k over four years

                                  No FHSSS                                                                              FHSSS

Income	$85,000	Income	$85,000
Total saved	$50,000	Total saved	$50,000
Income tax on deposit savings (32%)	$16,000	Income tax on deposit savings (15%)	$7,500
Total deposit savings after tax	$34,000	Total deposit savings after tax	$42,500

Difference in your deposit if you utilise the FHSSS: $8,500

Scenario 2: Contribute $30k over two months

                                  No FHSSS                                                                              FHSSS

Income	$85,000	Income	$85,000
Total saved	$30,000	Total saved	$30,000
Income tax on deposit savings (32%)	$9,600	Income tax on deposit savings (15%)	$4,500
Total deposit savings after tax	$20,400	Total deposit savings after tax	$25,500

 Difference in your deposit if you utilise the FHSSS: $5,100

If you’re looking to consider this strategy, book a complimentary 1:1 session with one of our Client Service Managers.

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^{* Eligibility Criteria and contributions caps for the First Home Super Saver Scheme (FHSSS) apply and are available at: https://www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/#AbouttheFHSSscheme The figures presented are estimates only, and actual outcomes may vary due to various factors. This information is of a general nature. It does not take into account your objectives, financial situation or needs. You should consider your own financial position, objectives, and requirements. We encourage you to obtain personal advice from a licensed financial adviser before making a financial decision.}