First home saver accounts (FHSA) are part of the government’s election commitment to provide a simple, tax effective way to help first home buyers kick start saving for a first home. These accounts will be available from financial institutions (including banks and super funds) on 1 October 2008.
There are several incentives to open a first home saver account:
The more money you save, the more the government will contribute (up to a certain limit each year).
There’s a tax incentive to save money for your home because you don’t pay tax on any earnings on the account. Earnings on first home saver accounts are taxed at 15%, but the account provider is liable to pay it.
After each financial year, you’ll receive a government contribution based on your personal contributions during that year. When you’re ready to buy or build your first home, you withdraw the funds and close your account.
www.ato.gov.au/individuals/content.asp?doc=/Content/00155253.htm&page=1&H1