First home buyers scheme not much help

Jarrod Sierocki

The Turnbull government has just announced that young people will be able to use their superannuation to save for a first home deposit, so how exactly does that work?

Good luck saving for that dream home, you’re not going to get much help.

A SCHEME to help first home buyers save for a deposit received much fanfare when announced in the Budget on Tuesday.

The scheme allows people to put away up to $15,000 a year into their superannuation pre-tax if they are saving for a deposit. You can only do it for two years so the maximum you can save is $30,000.

Treasurer Scott Morrison promised it would “boost savings by up to 30 per cent.”

But Superfund Partners director Mark Beveridge has crunched the numbers to find out if it will actually help first home buyers that much.

He says the average person would only save about $2500 extra a year.

Mr Beveridge says that even if you are in a couple and save the maximum amount over two years, the total benefit is still less than $10,000.

“As a fina…

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