Pay just 15% tax
Before-tax contributions are taxed at only 15%
With the scheme, it’s like your money is in a powered up savings account. You can take advantage of special tax benefits through your super.
26-year-old Carly is currently working whilst living at home with her parents and earns $65,000 a year, plus super. By using the FHSS scheme, she’ll be able to take advantage of the before-tax special treatment and potential super returns and arrange a salary sacrifice agreement with her employer to contribute $6,000 per year, allowing her to save for her first home faster. Here’s how the FHSS scheme can help her.
How Carly saved an extra $7,351 with the FHSS scheme
|Carly contributed $6,000 per year to her super under the FHSS||After 5 years of contributing via FHSS, she saves $26,940||By saving via the FHSS, she saves an additional $7,351 to put towards her deposit|
|Extra contribution (using salary sacrifice)||Savings account|
*Case study assumptions: