Will This Help First Home Buyers?

Salary Sacrifice A Deposit

29 April 2017

Article heading image for Will This Help First Home Buyers?

Young Aussies look set to get a helping hand into the property market in the upcoming federal budget.

First home buyers will apparently be able to use pre-tax income to save a deposit, similar to the way people currently salary sacrifice.

The move would cut the amount of tax people pay, instead letting them pour the cash into a savings account they can use to buy their first home, according to News Corp.

Basically it means first home buyers could take $5, 000 out of their pay, effectively bringing their taxable income down by $5, 000, which for someone on $50, 000/yr would save them $1,625 in tax.

Former PM Kevin Rudd brought in a similar plan some years ago that was abolished back in 2015 due to a lack of interest.

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