First home saver accounts are designed to help Australians save a deposit for their first home. These accounts are available from financial institutions like banks and credit unions.
To qualify for a first home saver account you must:
- Be between 18 and 65
- Never have owned a dwelling in Australia that was your main residence
- Have a tax file number
- Never have previously had a first home saver account
- The government generally contributes 17% of the first $5,000 you contribute to the account each financial year.
- The more you save, the more the government contributes. There is an account balance cap for the financial year which is indexed over the life of the account.
- Account holders must contribute at least $1,000 over four separate financial years before they can withdraw money from the account to purchase or build their first home. Withdrawals are tax-free.
- Your account provider pays the 15% tax on your account earnings.
NOTE: If you don’t proceed with buying or building your first home, you must contribute the balance of your first home saver account to your superannuation fund.
MORE: See the ATO website for more information on First Home Saver Accounts.
To find out more please call us on +61 2 9086 9444