Changes to Superannuation Laws For First Home Owners
Are you eligible for the First Home Owner Grant? There are some important changes coming that affect early access to superannuation for first home buyers from July 2017 that could significantly benefit you and your family.
What is the First Home Owners Grant?
The First Home Owner Grant (FHOG) is a one-off $15,000 grant available for people buying a new home valued at $575,000 or less. To be eligible to apply this must be the first residential property purchase for both you and your partner in Australia and you must plan to live there for at least 6 months from the date of either settlement or completion of construction. The property must also be one that has not been sold before as a residential property. The property can be a house, unit or townhouse.
You must be an Australian citizen or resident.
First Home Owners Can Use Super For First Home Deposit
From July 1 2017 first home owners will now be able to deposit up to $15,000 per year in voluntary contributions towards their superannuation. The cap on these contributions is $30,000 in total and you can combine these savings with your partner. From July 1 2018 new home owners will then be able to apply to withdraw these voluntary contributions to use towards the deposit of their new home. These will be taxed at a marginal rate.
To find out if you qualify for the First Home Owner Grant, visit the official RevenueSA website.To read more about the changes to early access to superannuation, visit the official Australian Tax Office website.