Industry say’s “don’t rush with your super contributions” first home buyers
FHBA Market Update: 4 July 2017
On 1 July (the start of the new financial year) there was a few state based changes in relation to first home buyer policies, in particular the First Home Owners Grant (FHOG) and stamp duty concessions. Some first home buyers are winners (e.g. NSW, Victoria), while others have unfortunately seen government assistance wound back (e.g. Western Australia). Below you will find a link summarising the changes for every state.
The other measure that was due to begin on the 1st of July was the federal First Home Super Saver Scheme (FHSSS). Announced by the federal government back in the May budget, the scheme was designed to allow aspiring first home buyers to make voluntarily super contributions to their super fund, where they would receive tax benefits, greater returns on investment (based on a deemed rate) and be allowed to be withdraw the funds for a deposit.
However, the FHSSS has not passed law to date. In short, this is where we are at:
- The FHSSS was announced by the Turnbull government in the May budget as a scheme designed to assist first home buyers build a deposit sooner;
- The scheme received mixed responses by the industry and wider Australian community;
- The Australian parliament is currently considered ‘hostile’ – that is, it is hard for the federal government to get laws passed;
- The Australian Labor Party (ALP) and the Greens Party do not agree with the scheme saying it won’t be well taken up and it will only push property prices up higher;
- The Australian Parliament has not passed the legislation as law yet and currently the Parliament is on a winter break;
- Various superannuation funds are telling members different things, however the body that will be in charge of monitoring the FHSSS (should it be passed) is the Australian Taxation Office (ATO), whom are simply advising that the FHSSS is yet to receive ‘royal assent’ (i.e. passed as law);
- As general advice only (not taking into account your personal circumstances), FHBA suggests that first home buyers do not start making voluntary superannuation contributions for the purpose of saving a deposit while the FHSSS is only in a proposal phase (and if it does get passed as law, to then seek advice before commencing any contributions).
There are no guarantees that the FHSSS will even pass as law at a later date.
What is our position on this? Well, we have been lobbying for 2 years for a special scheme designed to assist first home buyers build a deposit (the hardest part of being a first home buyer). With the FHSSS, we believe that this proposal would achieve this, but the FHSSS does seem rushed and is not as great as our proposal to the government (in other words, it could be better). If the FHSSS is not going to be backed by the ALP and Greens Party we would like to seem them put forward alternative suggestions on ways to assist first home buyers build a deposit.
Stay tuned to FHBA News for further updates on the FHSSS proposal.
Read on in this bumper FHBA Market Update for:
- Changes to the FHOG and stamp duty concessions for first home buyers;
- FHBA’s Taj Singh’s interview with Domain on Sydney options around the $650,000 mark;
- Why the RBA left the official cash rate on hold again;
- The latest auction clearance rates;
- The latest housing prices;
- 2017 tax deductions to consider;
- and a whole lot more!
First Home Buyer News
- 1 July changes summarised – On the 1st of July many state based affordability measures for first home buyers (e.g. the First Home Owners Grant and various stamp duty relief programs) changed – see the changes in every state in FHBA News
- What will $650,000 get me in Sydney? – As of 1 July, eligible first home buyers in NSW will pay no stamp duty on properties valued at under $650,000 – but what will $650,000 get you in Sydney? – FHBA co-founder Taj Singh spoke to Domain about the different options around this price point
- It’s tax time again – With the start of the new financial year comes the time to do your tax return again – and as a first home buyer, you want to make sure you are maximising any tax deductions – learn about what tax deductions you can claim this year from DJK Partners
Capital City Property Price Movements – as at 4/July/2017
Updated daily, The CoreLogic Daily Home Value Index show’s how property prices have been changing in our largest capital cities over the last 12 months:
- Adelaide: 479.56 (Qtr – 0.5% / Yr + 2.8%)
- Brisbane: 560.47 (Qtr + 1.0% / Yr + 3.7%)
- Melbourne: 921.24 (Qtr + 2.2% / Yr + 14.5%)
- Perth: 572.81 (Qtr + 0.6% / Yr – 1.7%)
- Sydney: 1123.89 (Qtr + 0.9% / Yr + 12.5%)
Preliminary Weekend Auction Clearance Rates (1 – 2 July 2017)
Interest Rates Update: 4/July/2017
Today the Reserve Bank of Australia (RBA) opted to leave the official cash rate on hold. Monitoring our leading banks, FHBA Mortgages has noticed that banks continue to favour owner occupier loans over investor loans.
- Compare a range of high interest savings accounts
- Compare a range of home loan rates
- Speak to a home loan expert
- Why the RBA left the cash rate on hold
New Homes of the Week (edition 61)
These are our top picks for First Home Owner Grant (FHOG) eligible properties this week! All the homes are affordably priced for aspiring first home buyers.
Tweet of the Week
Need help with working out what ‘fhb’ gov’t. assistance you are eligible for? Speak to an #FHBA Coach! https://t.co/nE9m72fyvX #ausproperty
Missed a previous FHBA Market Update? Click here to catch up now
First Home Buyers Australia