Super plan to fast-track deposit for first-home buyers

The Australian 12:00am January 12, 2018

Glenda Korporaal

Australians can boost their first-home savings by putting an extra $30,000 each, or $60,000 per ­couple, into their superannuation, federal Assistant Treasurer ­Michael Sukkar said yesterday.

He said allowing people to save through their superannuation would “provide a much-needed tax cut” to first-home buyers.

Under the changes, passed by parliament last month, people can contribute another $15,000 a year or a total of $30,000 to their super within the existing contribution caps.

This allows them to take advantage of lower tax rates on superannuation contributions and earnings.

From July 1, they can withdraw extra contributions made since July 1 last year, along with the earnings from those contributions, to help buy their home.

Mr Sukkar said the system would allow most first-home buyers to “accelerate their savings by at least 30 per cent”.

“I encourage eligible individuals to take advantage of this scheme which provides a significant leg-up in saving for a first-home deposit,” he said.

The government announced the measure in the May 2017 budget. It said the measures were part of a “comprehensive approach to housing affordability”.