First Home Saver Accounts (FHSAs) is a Federal Government initiative that allows first home buyers to save a larger deposit faster through a combination of Government contributions and low taxes. Under the arrangements, the Government will contribute 17 per cent on the first $5,000 (indexed) of individual contributions made each year.
This means if you contribute $5000, you will receive a Government contribution of $850.
More Information and Help with Your First Home Savers Account
Your local mortgage broker can help you determine your eligibility for the first home savers account, help you complete the paperwork and even find the home loan that is in your best interest. Simply complete our brief mortgage broker form or call us at any time on 13 LOAN or (+61 2 9249 3739 direct).
First Home Saver Account Eligibility Criteria
You may be able to open a First Home Savers Account If you:
- are aged 18 or over and under 65;
- have not previously purchased or built a first home in which to live;
- do not have, or have not previously had, a First Home Saver Account; and provide your tax file number to the provider.
Penalties will apply if you open a First Home Savers Account, if you are not eligible to do so.
Contribution and Tax Arrangements
Government co-contributions are paid on individual contributions of up to $5000 per year, at a rate of 17 percent, providing a maximum government contribution of $850 per year.
You can contribute up to a maximum of $75,000 to your first home saver account – any contributions over this amount will be returned to you, however outstanding government contributions and interest will still be paid.
To withdraw from your first home saver account, you will need to have saved a minimum of $1000 for each of the four years the account has been opened. This withdrawal is tax-free if used to purchase or build your first home to live in.
