First Home Saver Calculator Information
The First Home Saver calculator simulates the total savings accumulated in a special First Home Saver account with a regular deposit frequency, initial deposit, interest rate over a given savings period. It takes into consideration how the savings will be affected by government contributions and special tax laws.
The results from this calculator should be used as an indication only.
Important information about First home saver accounts
First Home Saver accounts can only be used to buy or build a first home, or to put into super.
You may only have a First Home Saver account between the age of 18 and 65.
The government will make a contribution equal to 17% on the first $5,000* of your personal contributions for each financial year.
You have to deposit at least $1,000 per year into your account in at least four financial years (not necessarily in consecutive years) before you can withdraw the funds.
Calculator Assumptions
Inflation
All results are expressed in nominal dollar terms (i.e. the results are not adjusted for inflation)
Contributions
Where your account balance reaches the Account Balance Cap ($75,000 for the 2008-2009 financial year), contributions are assumed to cease as you would no longer be able to make personal contribute to the account. The Account Balance Cap is increased in line with the assumed level of general wage inflation in each year, in $5,000 increments. E.g. in July 2015 the Account Balance Cap is simulated to be $110,000.
Government contributions
The $5,000* maximum contribution for government contributions is assumed to increase in line with the assumed level of general price inflation in each year, in $500 increments. E.g. in July 2012 the maximum that government contributions are calculated on is simulated to be $7,000.
The calculator attributes the appropriate government contribution after the end of each financial year (i.e. 1st July), in reality, the contribution would be deposited into your account some time after:
1) you have lodged your tax return for that financial year; and
2) your account provider has reported your personal contributions to the ATO.
NB: Although in reality the end date entered in the calculator may be before the financial year end, the calculator includes the equivalent government contribution amount that you would receive for that financial year.
Interest
The calculator assumes that deposits and interest crediting occurs at the same frequency (except for yearly deposits) e.g. selecting monthly deposits will calculate interest on the account monthly. Likewise the 15% tax on interest is calculated at the same frequency. For yearly deposits interest and tax is calculated monthly to be accurate to the start and end dates.
*values as stated by ATO for the 2008-09 financial year.
For more information please visit the First Home Saver accounts essentials page on the ATO website.
