First home saver accounts offer a tax-effective way of saving for your first home through a combination of government contributions and concessional tax rates. These accounts are available from certain financial institutions, including banks and credit unions.
To help you work out if a first home saver account will suit you, visit the Australian Securities and Investments Commission (ASIC) website – FIDO – at www.fido.gov.au/firsthomesaver
FIDO’s first home saver account calculator can help you work out how to reach your saving goals and compare accounts.
To find out who offers first home saver accounts, visit the Australian Prudential Regulation Authority (APRA) website at www.apra.gov.au
There are several good reasons to open a first home saver account:
The more money you save, the more the government will contribute – up to a certain limit each year.
There’s a tax incentive to save money for your home because you don’t pay tax on any account earnings. Earnings on first home saver accounts are taxed at 15%, but the account provider is liable to pay it.
You need to use the money you save as a deposit or to meet other costs you incur in buying or building your first home. If you decide not to go ahead with buying or building your first home, you'll have to contribute the balance of your first home saver account to your superannuation fund.
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