Author Topic: kinda tax-related: first home super scheme  (Read 607 times)

stashgrower

  • Bristles
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kinda tax-related: first home super scheme
« on: September 25, 2017, 01:22:22 AM »
I'm behind on the news. Is this the latest, that the legislation is in parliament but still in the pipeline?

http://www.financialobserver.com.au/articles/government-introduces-first-home-scheme-laws

marty998

  • Magnum Stache
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Re: kinda tax-related: first home super scheme
« Reply #1 on: September 27, 2017, 05:48:53 AM »
This is so silly. The government criticised the previous government for the FHSA accounts, closed it down saying it was unpopular, and they have largely implemented in substance the same thing now and calling it a "game-changer"???

Mind boggled.

Only a fraction of young people contribute voluntarily above the minimum to Super. They're not going to magically migrate on mass to this new scheme.

mjr

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Re: kinda tax-related: first home super scheme
« Reply #2 on: September 27, 2017, 05:45:46 PM »
Nothing wrong with the concept.  If someone is actively saving for a house deposit, they can now do it in a low-tax environment.

That said, putting it through the super system is very complicated, most people have no idea about the rules associated with super.  Also, in this low interest rate environment and with most people on lower to mid tax bands it's hardly worth worrying about.

O'Dwyer and Morrison thoroughly cocked-up their super changes.

stashgrower

  • Bristles
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Re: kinda tax-related: first home super scheme
« Reply #3 on: September 30, 2017, 12:54:32 AM »
What's the MMM version? :D

I'm unsure whether to use this scheme. I like the idea of the tax benefits! I have some unknowns: time frame, partner. While my rental is good, I'm happy to save up a larger deposit. I think house prices are crazy even if they have fallen.

Since I have a high % of stocks vs cash in my super, will I risk losing money if I buy in <7 years and the market crashes by more than the tax benefit?

But...I hate that my cash savings account is not earning much for goodness knows how long.