UTBSM

Posts Tagged ‘asset tests’

The federal government has lately launched The First Home Saver Account, also known as FHSA, to help all those people who are looking for their first homes . It has even offered some contributions to FHSA and the interest that gathers on this account is generally taxed at reduced rates. It is a great opportunity for people who want to buy their home for the first time where the buyer has to save deposit by this effective and tax saving account. Therefore, FHSA has ascertained to be quite advantageous for first home buyers. This program was launched in the year 2007 by Prime Minister Rudd as a simple tax saving program. It gives governmental assistance to encourage people to start saving for their first homes in Australia. It’s a great way to save money with first home savings account. You can instantly deposit your money and you are obliged to keep the savings in your account for at least four years. You need to maintain a balance of amount $75,000. Till you make this amount, you must save and invest your money in your account. You get great Government contributions once your account reaches this balance. You are not allowed to do any part withdrawal from this account and if you withdraw the balance, your account is stopped. The FHSA account holder enjoys tax benefit and with each $5000 index amount you save, the government contributes 17%. Further, the income tax is usually charged higher than 15%, however for FHSA earnings, the tax rate is of 15% only. Moreover, you need not pass any security asset tests for this account. But, you can manage this account till you purchase your home in Australia or until you become 65 years old.