Did you know that as of 1st July 2018 first-home buyers will be allowed to use up to $30,000 voluntary superannuation contributions to place a deposit on a house or apartment? A new $250 million government scheme is on the way to assist the younger generations gain a foothold in the property market.
You can start making contributions right now to try and get a head start. First-home buyers will be able to withdraw a maximum of $30,000 of contributions beyond the 9.5% super guarantee, plus the earnings generated from those savings.
This policy is part of a series of new measures designed to improve housing affordability.
Many are speculating that this will cause property prices to rise as more and more people gain the ability to make a purchase on a home, making a more competitive market – especially within inner city areas where there is little the government can do to boost the supply of housing.
This scheme is definitely a step in the right direction, enabling savers to push extra money into their super at a generous tax rate will more than certainly assist in building a deposit more quickly than is currently possible.
You can read more about the government scheme here on the official website.