How the First Home Super Saver Scheme and First Home Guarantee can help eligible buyers get into their first home.
Take advantage of the extra help available for South Australian first home buyers.
First home buyer grants
South Australia’s First Home Owners Grant can provide up to $15,000 maximum to first home buyers looking to build a house, buy a home that hasn’t been lived in before, or a substantially renovated existing home. The property must have a market value of $650,000 or less, and there are also residency and age criteria.
Upfront cost help
The national First Home Guarantee (previously the First Home Loan Deposit Scheme) is available to SA residents. It can help lower the amount of deposit you need - often down to as little as 5% - because it guarantees part of your home loan, so you can avoid expensive Lenders Mortgage Insurance.
Tax help with saving
The Federal Government’s First Home Super Saver Scheme (FHSS or FHSSS) helps South Australians save for their first home deposit by using your super fund, where super is generally taxed at 15% (before-tax contributions and investment earnings), well below normal income tax rates.
Young teacher, Gaurav, is keen to buy his first place and finds a newly-built apartment for $560,000. It’s slightly more than he was intending to pay, but he manages it like this…
Tip – In SA there is no stamp duty relief for first home buyers so start saving early for your deposit and stamp duty costs. Early savers can gain tax concessions on up to $15,000 per year added into their super, which can then be withdrawn under First Home Super Saver rules.
How does the First Home Super Saver Scheme work?
In short, the FHSS scheme lets you tap into the portion of your super that you personally contribute, to help cover the costs of a deposit on your new home.
If you’ve been contributing for a while, you may have enough already. If you’re not looking to buy for a few years, then now could be a good time to start and gain a tax concession.
When the time comes, you can withdraw up to $15,000 worth of contributions per year to a total of $50,000 plus the earnings while the funds were in your super.
Looking overall, South Australia’s First Home Owners Grant can help reduce the pain of buying your first home, but you still need to fund your deposit, which is where the FHSS scheme comes in.
How do I save using the FHSS?
You can save by making your own contributions to your super (over and above what your employer contributes for you).
A common method is salary sacrificing, where you ask your boss to pay an extra bit of your salary directly into your super, instead of to you each payday. It then gets taxed at only 15% instead of your higher, regular income tax rate.
Alternatively, you can also do it yourself, by transferring an amount and claiming a tax deduction with your return.
Note, there are caps on how much you can contribute each year.
What is the First Home Guarantee?
The First Home Guarantee (FHBG) is an Australian Government program designed to help eligible buyers purchase their first home with a deposit of as little as 5% instead of the 20% that many lenders require for a loan that doesn’t have Lenders Mortgage Insurance attached.
How does the First Home Guarantee work?
The Commonwealth Government’s First Home Guarantee (FHBG) is a way for eligible applicants to eliminate the expense of Lenders Mortgage Insurance, which can be as much as $10,000.
The FHBG is generally the only way to avoid this insurance in South Australia, unless you’re able to pay a higher deposit – often around 20%.
What are the eligibility criteria?
In general, to qualify for the First Home Guarantee (formerly First Home Loan Deposit Scheme or FHLDS) in South Australia in 2023, you must meet these conditions:
Only residential real estate qualifies, including:
In Adelaide, the property must have a value of not more than $600,000 and in wider SA the maximum value is $450,000.
Visit the First Home Buyer Guarantee website for full eligibility details.