Skip to main content

First Home Saver Accounts

The image “http://www.webwombat.com.au/finance_/articles/images/first-home-buyers.jpg” cannot be displayed, because it contains errors.

First Home Saver Accounts

First Home Saver accounts are a new type of investment account designed to help Australians boost their savings for a deposit on their first home. This Government initiative will see super funds and banks being able to offer a superannuation style investment account that helps maximise savings through tax breaks and Government contributions.

First Home Saver Accounts

8 Feb 2008 ... On 4 February 2008, the Government confirmed its 2007 federal election commitment to establish First Home Saver Accounts to assist ...
www.homesaver.treasury.gov.au

 

First Home Saver accounts will be concessionally taxed (like for superannuation), meaning that generally much lower tax will be paid on the investment or interest earnings of First Home Saver accounts, than for regular savings accounts or managed investments.

About first homesaver account - Factsheet

 

Who can open a First Home Saver account?

To open a First Home Saver account you will need to:

Be aged 18 to 65

Have not previously purchased or built a first home in Australia to live in;

Not currently have or previously have had a First Home Saver account.

Provide a tax file number.

http://www.inkcinct.com.au/Web/CARTOONS/2007/2007-691P-first-home-buyer-today.jpg

How to get started

Under the enhanced First Home Saver account scheme announced in the Federal Budget in May 2008, there will no longer be any initial contribution required to open a First Home saver account. However, annual contributions of at least $1,000 must be made in four financial years to be eligible for the tax-free withdrawal for a first home.

How do the savings incentives work?

First Home Saver accounts will offer a simple, tax effective way to encourage and maximise saving for a first home deposit through a combination of Government contributions and low taxes.

Government contributions

First Home Saver Accounts will now attract a flat 17% Government contribution on the first $5,000 of savings made to a First Home Saver account in any year.

The image “http://www.horizonmagazine.com.au/wp-content/uploads/2007/10/firsthome.jpg” cannot be displayed, because it contains errors.

Low tax rates

Investment earnings (or interest) that accrues in a First Home Saver account will be taxed at a maximum of 15 per cent.

Government contributions will be tax free.

Withdrawals from a First Home Saver account used to purchase or build a first home will be tax free.

Popular posts from this blog

Best Australian stock forums online ( finance forums)

Many traders and investors use forums to share ideas, learn from the more experienced, or simply to stave off boredom during long hours at the computer. Here we list the known universe of forums, complete with costs, member numbers, extra benefits and popular forum topics. Please post a message on Your 2 Cents if your favourite forum isn't listed here, or if you feel that there's more to add about the day-to-day goings on in your online community.Forum
Cost
Stock comps
Forum areas
Comments
AussieStockForums.comFreeASX by share code, General, Beginners, Derivatives, Commodities, International, Strategies/SystemsEasy to use, independent forum. Aussie Stock Forums has a group of very active and knowledgeable traders. Private messaging available. Australian forum.
Chimes in ExileFreeASX stocks, fundamental analysis, technical analysis, commodities, economics, investment tools The forum has a small group of regular contributors that form a genuine community of investor…

The diggers and dealers forum meet 2011

The diggers and dealers forum has just begun August 1. Its a three day annual event happening every year  at the WA country town of kalgoorlie.2011 Diggers & Dealers forumBig name brokers  keenly watching the event will be MacquarieDeutsche BankBell PotterGoldman SachsRBS MorgansEvans & PartnersHartleysBlack Swan Euroz.Well most other websites will give you the  finer details of the annual meet and greet that happens at kalgoorlie , so we will just stick with the bare minimum of details  and focus on the more enjoyable bits  of information that the dealers require to strike a good deal while in town.Bare detailsWebsite : Diggers & DealersEvents : Program and scheduleWatering holes and entertainment at Diggers and dealers forumPubs , clubs  and skimpy (barmaids) culture in kalgoorlie . There are about 25 pubs in Kalgoorlie-Boulder area and for a city that stretches just 67sq km the number of pubs makes for  a good choice on drinking holesand entertainmentExchange Hotel ( Pa…

Stock market and High frequency trading

High frequency and computerised trading androgue trading is again  in the news with  trader Mr Adoboli working for UBS  who was arrested at his desk, is alleged to have lost £1.3 billion through his rogue trades  according to the company , now also annoucing that they might go into a loss in this quarter. According to some reports in the media it was said that Mr Adoboli Himself had reported the  trade when the trade went bad before the computers picked up the loss.
Not so long ago in 2008 Jérôme Kerviel, the Paris-based Société Générale trader lost £4 billion in rogue trades, but fought it out in court contesting that the trading firm knew about his trades with large amounts.

High frequency computerised trading in Australia HFT drives the wild swings in global markets and in co-relation influences the local assets, the intensity is expected to rise with online exchange Chi-X to  begin operating in Australia soon with a limited number of stocks in November. The ASX will launch its Pur…