First Home Super Saver Scheme - Estimator
This estimator indicates the potential benefit of the Government’s First Home Super Saver Scheme. The estimator compares outcomes of saving for a first home using annual pre‑tax contributions to superannuation (of up to $30,000 and no more than $15,000 in any single year) relative to saving the same amount (less tax at personal tax rates) in a standard deposit account.
Personal circumstances may differ from the general estimates provided.
The amount available at different withdrawal dates is shown in the figure below.
Please note, amounts cannot be withdrawn prior to 1 July 2018.
- This is a model, not a prediction, and should not be considered a substitute for financial advice from a licensed financial adviser. The estimator does not constitute an endorsement of any particular course of action.
- The model is for illustrative purposes only: it seeks to explain the effect of the Government’s 2017-18 Budget First Home Super Saver Scheme measure in a hypothetical scenario which may not accurately reflect your personal situation. It is intended to illustrate the effects of the Budget measure relative to saving in a deposit account for individuals with different contribution patterns and different income levels.
- The results are based on the limited information that you provide and assumptions made about the future which are set out in further detail below. The amounts projected are estimates only and cannot be guaranteed; actual amounts may be higher or lower. The estimator cannot predict outcomes with certainty because this will depend on personal circumstances and external factors such as changes in investment earnings, tax and interest rates.
- The Budget measure on which the estimator is based has not been enacted into law; amounts contributed to superannuation cannot be accessed under current superannuation settings. It is up to the Parliament to enact laws.
- Do not rely solely on the estimator to make decisions about saving for a housing deposit, there may be other factors to take into account. The estimator is not a substitute for financial advice. Consider your own investment objectives, financial situation and needs. You may wish to get advice from a licensed financial adviser.
- If you want to consider the financial implications of taking out a loan for your home purchase, you may want to use the ASIC mortgage calculator that is available on the MoneySmart website.
- The estimator assumes that contributions are made from 2017-18, and accounts for announced future changes in the rates of the taxes modelled. Taxable income and salary sacrifice amounts are held constant over time.
- When calculating the amount available for withdrawal, the estimator assumes that contributions are made each year until reaching the $30,000 limit on pre-tax contributions that can be subsequently withdrawn under the scheme.
- The interest rate paid on savings in a deposit account is assumed to be fixed at 2 per cent per annum (this reflects average retail deposit rates in April 2017).
- The deemed earnings rate applied to savings in superannuation is fixed at the shortfall interest charge (SIC) rate for April to June 2017 (4.78 per cent per annum).
- This estimator assumes the selected level of concessional contributions can be made within an individual’s annual concessional contribution caps. Available concessional contribution cap space for each year will depend on individual circumstances. If total concessional contributions (including Superannuation Guarantee contributions, concessional employer contributions, salary sacrifice contributions and personal concessional contributions) exceed the concessional contribution caps ($25,000 in 2017-18), excess contribution taxes will apply as per existing policy. These excess contributions will not qualify for the same tax concessions as concessional contributions.
- Superannuation Guarantee (SG) contributions from your employer have not been taken into account in the estimator. SG would reduce the amount of concessional cap space available to make a contribution in this scheme.
- Personal income tax calculation outcomes are based on a single individual. Liability may differ for a partnered individual, depending on the partner’s income. Calculations account for gross marginal tax scales, Medicare Levy and the Low Income Tax Offset. No other components of the personal income tax system are included.
- The earnings included in withdrawal amounts assume that the withdrawal occurs on the final day of the financial year.