Here at Summit South West because we are Built Around People, we wanted to share with you what the changes mean and how you can make the most of them to help you achieve your new home goals, particularly as our Easystart Homes range offers specialist solutions for first home buyers.
The Budget talks about the “First Home Super Savers Scheme”, so what is that exactly?
Well, it’s a new initiative and is very much like a structured and controlled savings plan. It works by letting you contribute your before-tax income into your superannuation fund on a voluntary basis.
As a first home buyer you can put up to $15,000 a year into your superannuation fund for two years which means a potential total saving of $30,000 per person, so $60,000 per couple. And yes, that money can be used towards your deposit for your first home!
The money will be taxed at the 15% superannuation tax rate. When it's withdrawn, it will be taxed at the marginal rate, with a 30% tax offset. What that means is that the withdrawal is tax-free for anyone earning under $87,000 per annum.
Summit South West General Manager David Hunt said the scheme is due to start on July 1, upon passing Parliament.
“There is no better time than to start planning for a new home deposit than now,” Mr Hunt said. “Using the First Home Super Savers Scheme is a great way to take advantage of the controlled savings momentum to help you get your start on the property ladder.
“Even the Treasurer has been quoted saying that “under this plan, most first home savers will be able accelerate their savings by at least 30 per cent”. We would stress that this is an option for people who do not fit the criteria for Keystart, which is a very real option for many first home buyers now.
“With Keystart you can get into your new home with just 1% genuine savings so there is really no time to wait to start the enquiry process.
So what does the news mean for you? Well with Easystart Homes designs starting at just $146,600 and so many house and land packages in the South West including Bunbury, Busselton, Dalyellup and Capel, now is a good time to start.
Plus if you partner with Easystart Homes and Summit South West, you can rest assured you’re building with the region’s best local builder. We’re the back-to-back winners of the coveted customer service award from the MBA and we build with total transparency as part of the Summit Advantage.