The Money Mustache Community
Around the World => Australia Discussion => Topic started by: stashgrower on September 25, 2017, 01:22:22 AM
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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
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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.
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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.
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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.
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$30k to buy a $1M home that has the downside risk of a >30% drop if Australian property returns to international norms.
If a tax benefit of ~$5-6k is what's stopping you from putting together a deposit on a house, you probably can't afford the risk of an increase in interest rates on being that highly leveraged on a home loan.
No thanks.
Let's see some legislation that actually reins in house price growth and reduces what is a significant systemic risk for the Aussie economy. This just seems like they're throwing more money at the ponzi scheme to keep it going. Just my two cents.
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I was already maxing out my concessional super contributions so this just gives me a little more flexibility with it if I decide to buy a property in the future.
The more my salary rises though, the less voluntary concessional contributions I can make so I may never max out on the 30k limit.
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So I think I am in a unique position where I can easily take advantage of this in a low-risk way, but wouldn't mind using everyone here as a sounding board.
I have signed up for an off the plan townhouse being built, and won't be ready until late 2018/early 2019.
We've got a 20% deposit, but are aiming for an even $100k deposit on a $375k property. Now, I see after tax contributions to super are tax deductible? So I was thinking I could deposit $15k to super this FY and then another $15k next FY, deduct them both from their relevant tax years, and withdraw the slightly less than $30k from my super.
Does this make sense and is it within the rules? I feel like it is, and I would save $1-2k.
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You would still pay contributions tax of 15%, so you would end up with $25,500 in there.