Advisers say borrowers would be mad not to take advantage of the First Home Super Saver Scheme, but perceived complexity is turning them off.
could score an extra $12,000 to put towards a deposit by taking up a scheme advisers and brokers describe as lucrative but underutilised – but only if they act fast.
, rather than income tax which can be as high as 45 per cent, savers can essentially quarantine a portion of their earnings away from a higher tax rate.Financial adviser Brenton Tong, of Financial Spectrum, believes uptake is still below where it should be because he believes every single first home buyer should be using the scheme. “It is free money, essentially,” he says.
“To put the money in, it’s just by the end of financial year. However, each super fund will have their own cut-off, so you’re best to check with each fund,” he says. “A personal deductible contribution is a 100 per cent tax-deductible contribution to your super fund – so a $15,000 last-minute contribution to your super would result in a $15,000 tax deduction in your tax return for the financial year,” Tong says.“However, make sure that you can put that much in – if you’re a higher income earner, you might already be putting the maximum into super, so if you put too much in, you may go over your limit .
“Young people are generally already disengaged with superannuation and there isn’t a lot of publicity around the scheme. It is fairly complicated, so that can immediately put people off as being too difficult,” he says.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Super tax: Greens demand changes to $3m super tax cap in return for supportThe Greens have a new list of demands in exchange for their support on Labor’s new tax on high balance super accounts.
Read more »
Carman‘s Kitchen founder details ‘super successful’ policy that allows employees to work from home7NEWS brings you the latest local news from Australia and around the world. Stay up to date with all of the breaking sport, politics, entertainment, finance, weather and business headlines. Today's news, live updates & all the latest breaking stories from 7NEWS.
Read more »
Fijians cruel Reds’ Super Rugby Pacific home final bidThe Queensland Reds’ Super Rugby Pacific home finals hopes have all but evaporated in a crushing homecoming for fallen Wallabies star Suliasi Vunivalu.
Read more »
Unbeaten Fever stunned at home in clash of titans as bottom side surges: Super Netball wrapSuper Netball: The Lightning have continued their winning ways in the Queensland derby against the Firebirds.
Read more »
Can we downsize into a more expensive home and still add to super?There are a raft of conditions to consider when making a downsizer contribution that you need to keep in mind.
Read more »
Can we downsize into a more expensive home and still add to super?There are a raft of conditions to consider when making a downsizer contribution that you need to keep in mind.
Read more »