First Home Saver Accounts

 A first home saver account (FHSA) is a savings account designed to offer you a simple, tax-effective way of saving for your first home through a combination of government contributions and low taxes.

How is a first home saver account different from a normal account?

It's a special purpose account that's more like a term deposit than a normal, everyday account because you have to keep the money there for a minimum period of time. Once that time has passed and you make the decision to buy or build your first home, you have to withdraw all the money at once and close the account.

The advantages of a first home saver account over a normal account are that government contributions add to your savings, and earnings are tax-free to you - so you don't report them on your tax return (earnings on first home saver accounts are taxed at 15% and the tax is paid by the account provider).

You can also make personal contributions at any time - for example, from your pay, a tax refund or an inheritance.
What is a home?
A home is a dwelling. This means a unit of accommodation that's fixed to the land, such as a:
  • House
  • flat
  • home unit
  • apartment, or
  • townhouse.
It does not include a demountable dwelling, mobile home, caravan or boat, unless it is suitable for you to occupy as a residence and is fixed to land that you own.

First Home Saver Accounts have been available from 1 October 2008.

For more information please visit the Tax Office Website at www.ato.gov.au.

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