Long-awaited amendments to the First Home Saver Account Act were made last week, with changes to the scheme applying to houses purchased after 25th May 2011.
First home buyers qualify for concessional tax treatment and government contributions if they contribute to their FHSA over four financial years.
A drawback with the original scheme was that if an account holder bought a house before the four-year eligibility period was up, the money in the FHSA would have to go into the person’s superannuation account.
In last year’s Budget, the Government said it would make the system more flexible, allowing money saved in an FHSA over four years to go into a mortgage if a house had been purchased prior to meeting the release condition. That change is now law – a year after it was announced.
For more information on the First Home Saver Account, go to http://www.ato.gov.au/individuals/pathway.aspx?pc=001/002/066
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