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First Home Buyers Super Savings Scheme

Posted on July 1, 2017 by Elaine McKelvey in Salary Packaging, superannuation with Comments Disabled

First Home Buyers Super Savings Scheme

Background to the First Home Buyers Super Savings Scheme

The Government will help Australians boost their savings for their first home by allowing them to build a deposit inside superannuation. From 1 July 2017, individuals can make voluntary contributions of up to $15,000 per year and $30,000 in total, to their superannuation account to purchase a first home. These contributions, which are taxed at 15 per cent, along with deemed earnings, can be withdrawn for a deposit. Withdrawals will be taxed at marginal tax rates less a 30 per cent offset and allowed from 1 July 2018.
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Withdrawing your Superannuation Fund

Posted on November 26, 2015 by Raj Sesha in superannuation with Comments Disabled

Why it’s a bad idea to withdraw your entire Superannuation fund in one lump sum

Over the past two years, more superannuation is being withdrawn out of retirement accounts in lump sums rather than being taken out as a steady income stream.

Australian Prudential and Regulation Authority figures show in the 2014/15 financial year account holders withdrew a whopping $31.4 billion in lump sums as opposed to $29.5 billion being taken from accounts as a pension.

Also in 2013/14, lump sum withdrawals were higher than super savings taken as an income stream.

However, Australians are being warned that withdrawing your entire superannuation savings in one hit can be a bad financial move, particularly for those with larger balances.There are many things to consider before withdrawing all funds at once.
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