Bongiorno & Partners - Taxation, Financial Planning, Insurance and Finance for Medical Professionals, Australia

First home saver accounts are designed to help Australians save a deposit for their first home. These accounts are available from financial institutions like banks and credit unions.

Eligibility

To qualify for a first home saver account you must:

• Be between 18 and 65
• Never have owned a dwelling in Australia that was your main residence
• Have a tax file number
• Never have previously had a first home saver account

Key points

• The government generally contributes 17% of the first $5,000 you contribute to the account each financial year.
• The more you save, the more the government contributes. There is an account balance cap for the financial year which is indexed over the life of the account.
• Account holders must contribute at least $1,000 over four separate financial years before they can withdraw money from the account to purchase or build their first home. Withdrawals are tax-free.
• Your account provider pays the 15% tax on your account earnings. 

NOTE: If you don't proceed with buying or building your first home, you must contribute the balance of your first home saver account to your superannuation fund.

MORE: See the ATO website for more information on First Home Saver Accounts.