More help to save for house deposit

The federal government has used the budget to beef up its contributions to first-home saver accounts. The accounts will help first-home buyers to save for their deposit on a home through government contributions and a discounted tax rate. Plans to vary the level of co-contributions from the government depending on the saver's marginal tax rate have been revised and the co-contribution will be set at 17 per cent on the first $5,000 saved each year. The requirement for an initial deposit of $1,000 has been removed and a maximum account balance of $75,000 replaces the previous $10,000 annual cap on contributions. The new accounts are due to be available from October and will cost the government around $1.2 billion over the next four years.

Source: The Australian Financial Review

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