Australia First Home Buyers Savings Account Comments Off
First Home Buyers Saver Account
The Australian government established the FHOG or First Home Owner Grant program back in 2000. The first home buyers grant program would enable first time homeowners to apply for a grant that could amount to as much as $7000 if they were approved. Each state and territory had the funds available for this program first home buyers saver account initiated to help with GST for homebuyers. This seemed to be a good thing but then the government went one step further. First home buyers saver account could be opened up by any Australian that was of age (18 or older). These special savings accounts for first home buyers savings account was meant to supplement the FHOG program mentioned above. We all know that saving for a new home for the first time can be a grueling experience.It is good that the Australian government helps through first home buyers saver account to help those who are starting a family. First home buyers grant will surely lift off some of those heavy weights in building a home to start in.
Many credit unions, banks and other financial institutions were assigned as caretakers of first home buyers savings account special savings program for first time home buyers. In a nutshell, the Australian government was willing to give 17% of the first saved $5000 amounting to $850 in a first home buyers grant. In effect, if you were a part of this first home buyers savings account program and you saved $5000 you would end up with $5850.00. Not a bad dividend for a first home buyers grant, for this will surely help to extend your money on other things with regards to building a home.
For persons who have first home buyers grant, there are conditions to this first home buyers savings account program. Each year a person saving for a new home had to make at least a $1000 deposit yearly over a four year time period before they could use the first home buyers saver account to purchase their home. There was also a tax on any interest adding up to 15% but when monies are withdrawn for the purchase of the first time buyer home, they are not taxable. The first home buyers savings account is for anyone between the ages of 18 and 65. One should consider to start early on working out a first home buyers grant. If you happen to have an account still open at the age of 65, it must be used or closed.
Remember that putting in $1000 in four years is required before withdrawal to your first home buyers saver account for your new home purchase, but any four years will do. They do not have to be consecutive.This first home buyers grant is surely practical that everybody will grab the chance to have it. As far as how much money can be saved, the government has said that with the first home buyers savings account, the top limit is $75,000. After that amount, you may still get your dividends but may not add more money to the first home buyers grant account.
With all the financial woes in today’s world of finance, it is great to see a government taking the initiative to help its citizens by giving first home buyers grant and get ahead in this troubled world. The first home buyers savings account established by the Australian government is a major step in the right direction. Saving for that first home has been made much easier with the generous first home buyers saver account described above to assist.
The credit unions, banks and financial institutions chosen for this savings program have the competitive edge over others and will offer higher savings interest rates to get your business. They are all competing for their share of this innovative first home buyers saver account. If you are a first home buyer or plan on being in that category in the future, then by all means, check out the savings plans available through these institutions. Your hopes and dreams for the future may become a bit more realistic because of the first home buyers savings account.
For more information, please visit Australian Tax Office (ATO)
http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/066/004&mnu=&st=&cy=1&mfp=