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#EveryoneNeedsaPlan to Utilise the First Home Super Saver Scheme
Posted by G. Dean McKinnon
on 28 February 2022
It is increasingly difficult to save enough money for your first home purchase but there are some ways the government can help, such as First Home Super Saver ('FHSS') scheme.
The FHSS scheme allows you to save for your deposit within your superannuation investment account. There are several key benefits to using your super as the saving structure but the ability to withdraw personal Concessional Contributions may provide a significant tax planning advantage.
Personal Concessional Super Contributions reduce your taxable income and may allow you to save for your deposit with tax-free income, depending on your taxable income and Marginal Tax Rate. Further, income earned within the superannuation structure is taxed at a maximum of 15% which may also be significantly lower than your Marginal Tax Rate.
As always, there are traps and pitfalls associated with the FHSS that you need to be aware of, so before undertaking a strategy of using superannuation to save for your first home, check with a suitably qualified Financial Planner to determine if this strategy is suited to your personal requirements.
GDM Is a Master Financial Planner with nearly 30 years experience in all things financial (including home mortgages) so do not hesitate to contact us and arrange your free initial appointment to discuss your requirements.
The FHSS scheme allows you to save for your deposit within your superannuation investment account. There are several key benefits to using your super as the saving structure but the ability to withdraw personal Concessional Contributions may provide a significant tax planning advantage.
Personal Concessional Super Contributions reduce your taxable income and may allow you to save for your deposit with tax-free income, depending on your taxable income and Marginal Tax Rate. Further, income earned within the superannuation structure is taxed at a maximum of 15% which may also be significantly lower than your Marginal Tax Rate.
As always, there are traps and pitfalls associated with the FHSS that you need to be aware of, so before undertaking a strategy of using superannuation to save for your first home, check with a suitably qualified Financial Planner to determine if this strategy is suited to your personal requirements.
GDM Is a Master Financial Planner with nearly 30 years experience in all things financial (including home mortgages) so do not hesitate to contact us and arrange your free initial appointment to discuss your requirements.
Author:G. Dean McKinnon
| Tags:PropertySuperannuationMortgages and FinanceFinancial Planning |
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