Few things are as painfully slow as saving for a house deposit in Australia. 

And if you live in a capital city? Well, that’s quite a different game altogether.

You put paycheck after paycheck into your savings account, yet somehow it feels like your savings haven’t moved in months.

It’s gruelling, demotivating.

If only there was some way you could get a Mario-Kart-bullet-esque boost to make it easier.

There is…

If you’re a hopeful first home buyer, you can score thousands of dollars in tax-savings that can be put towards a house deposit through the First Home Super Saver Scheme.

But you have to act before June 30.

The First Home Super Saver Scheme

This scheme was introduced by the federal government back in 2017 to give first home buyers a leg up in the housing market.

With this scheme, first home buyers can make up to $15,000 in additional pre-tax (or concessional) contributions a year, up to a total of $50,000 and withdraw it to use to buy a home.

And since super is taxed at 15% which is lower than most peoples marginal tax rate, first home buyers can bypass marginal tax rates in order to save up for a house deposit.

For example, let’s say you earn $80,000 and you put $10,000 each year for two years into super under the scheme. You’d only be paying 15% tax on that 20% (ie $3,000) as opposed to paying tax at 30%.

In fact, according to the Commonwealth First Home Super Saver Scheme calculator, you’d be financially ahead by $4,075 compared to if you’d saved in a traditional savings account, 

And if you’re saving with a partner, that amount could be much higher.

When you’re ready to buy your own home, you can withdraw a maximum of $50,000 from the voluntary contributions you’ve made to your super.

Get in before June 30

Now, as we mentioned earlier, there’s a limit of $15,000 on voluntary contributions to your super under the first home super saver scheme. 

But the good news is, it’s almost the end of the financial year. 

So theoretically you could put $15,000 into your super now…and another $15,000 in 11 days time.

Even if you’re looking to contribute a smaller amount, acting now, before the clock ticks us over into the new financial year will give you a major boost in achieving your home ownership dreams.