First home saver accounts
First home saver account no more
First home saver accounts were a Federal Government initiative
to help people save for their first home. These accounts have now
been abolished. Here we explain what to do if you have an old first
home saver account.
Changes to first home saver
The Federal Government abolished first home saver accounts
effective 1 July 2015.
Here are details of the changes the Government made:
- Accounts opened after 7:30pm Tuesday 13 May 2014 are not
entitled to a government contribution.
- Existing account holders are not eligible for a government
contribution on personal deposits made after the 2013-2014
- Tax and social security concessions ceased on 1 July 2015.
- Restrictions on withdrawals were removed on 1 July 2015.
Existing first home saver accounts have now been converted to
ordinary savings accounts. If you had a first home saver account
and are unsure what has happened to it check with your account
Features of first home saver
The main features of first home saver accounts were:
- The government made a 17% contribution on the first $6,000 you
deposited each financial year.
- The interest you earnt on your account was only taxed at a rate
- You had to save at least $1,000 each year over at least 4
financial years before you could withdraw the money. The 4 years
did not have to be consecutive.
- The maximum account balance was capped at $90,000. After your
savings reached this level, only interest and earnings could be
added to the balance.
First home saver accounts are no longer
available and existing account holders now have unrestricted access
to their money.
Last updated: 18 Aug 2015