Good news for first home buyers, a new front has opened up on the road to home ownership.
From 1st of July 2018, first home buyers will be able to withdraw voluntary contributions (made from 1st July 2017 onwards) plus the earnings generated by those savings and contribute this total amount for a first home deposit.
Under the measure, up to $15,000 per year and $30,000 in total can be contributed, within existing caps. Concessional contributions and earnings will receive a 30% tax offset on withdrawal to further assist in this measure. Importantly both members of a couple can take advantage of this measure to buy their first home together, that’s potentially $60,000 plus earnings a couple can contribute to the purchase of a house or unit.
As a future planning opportunity, home buyers can now think to make contributions to their super accounts to later use as their deposit.