The federal government has lately launched The First Home Saver Account, also known as FHSA, to help all those people who are looking for their first homes . It has even provided some aid to FHSA and the interest that accumulates on this account is normally taxed at lower rates. With this amazing tax saving account, the buyer can purchase his dream house for the first time and this is a wonderful opportunity for such people. Thus, FHSA has ascertained to be very helpful for first home buyers. This program was launched in the year 2007 by Prime Minister Rudd as a simple tax saving program. It gives governmental aid to support individuals to start saving for their first homes in Australia. With first home save account you can save a good amount of cash. You can immediately deposit your money and you are required to keep the savings in your account for at least four years. You need to maintain a balance of amount $75,000. Till you make this amount, you have to save and invest your money in your account. You get great Government contributions once your account reaches this balance. You are not permitted to do any part withdrawal from this account and if you withdraw the balance, your account is closed. The FHSA account holder enjoys tax benefit and with each $5000 index amount you save, the government contributes 17%. Moreover, the income tax is normally charged greater than 15%, however for FHSA earnings, the tax rate is of 15% only. Also, the asset tests for this account is not required. But, you can handle this account till you buy your home in Australia or until you become 65 years old.
Mar 03