Problems with interest rates and repayments? Ask for home loan help.
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For the latest information on First Home Owners' Savings Accounts, please see the official commonwealth web site:
http://www.homesaver.treasury.gov.au/content/default.asp
First Home Saver accounts are a new type of investment account designed to help Australians boost their savings for a deposit on their first home. This Government initiative will see super funds and banks being able to offer a superannuation style investment account that helps maximize savings through tax breaks and Government contributions.
First Home Saver accounts will be concession ally taxed (like for superannuation), meaning that generally much lower tax will be paid on the investment or interest earnings of First Home Saver accounts, than for regular savings accounts or managed investments.
Who can open a First Home Saver account?
To open a First Home Saver account you will need to:
• Be aged 18 to 65
• Have not previously purchased or built a first home in Australia to live in;
• Not currently have or previously have had a First Home Saver account.
• Provide a tax file number.
How to get started
Under the enhanced First Home Saver account scheme announced in the Federal Budget in May 2008, there will no longer be any initial contribution required to open a First Home saver account. However, annual contributions of at least $1,000 must be made in four financial years to be eligible for the tax-free withdrawal for a first home.
How do the savings incentives work?
First Home Saver accounts will offer a simple, tax effective way to encourage and maximise saving for a first home deposit through a combination of Government contributions and low taxes.
Where can I open an account?
First Home Saver accounts will be launched from 1 October 2008. The majority of accounts will be offered by superannuation funds (those who hold a public offer licence) and banks. Building societies, credit unions and life insurers will also be able to offer First Home Saver accounts.”
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