If you have a FHSA, don't forget to deposit $6k into your account before June 25 for a cool 17% return.

slix_88 on 19/06/2014 - 23:55
Last edited 19/06/2014 - 23:55

As a result of the recent budget changes, the government has decided to scrap the First Home Saver Accounts initiative effective 30 June 2015. What this means is your FHSA will effectively convert into a normal account and you're free to withdraw all funds without any imposing conditions.

Why deposit $6k? The government contribution of 17% is still available for contributions made up to $6,000 for this financial year. So you will essentially get a 17% return on your investment, guaranteed!

The catch? Applications received prior to 7.30pm on May 13, 2014 will only be honoured (I.E. Not available to new customers anymore)

Links: Wealthenhancers Property Observer

DISCLAIMER: I am not affiliated with any financial institution. I am merely a FHSA who was made aware of the changes to the initiative. The advice provided in my post is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. If any products are detailed on this website, you should obtain a Product Disclosure Statement relating to the products and consider its contents before making any decisions.

Financial

Comments

  • modsec802 on 20/06/2014 - 07:32

    Thanks for the tip.
    I acuallly have one of these accounts from years back i never used because of the lock in so it's probably time to finally use it.
    Seems the only catch is waiting until July 1, 2015 to withdraw.
    What's the go with June 25 instead of June 30?

    • Malarkey on 20/06/2014 - 08:58

      Pretty sure June 25 is what ME bank has been telling it's customers. It's probably just to cover themselves in case of any delays in their processing?

    • slix_88 on 20/06/2014 - 09:52

      As mentioned by Malarkey, it's to do with processing times. If you deposit on the 28th or 29th, it may not be processed until 1 July.

      Consider the $1,020 a return over the year which amounts to a 17% on the $6k you invest now.

      • modsec802 on 20/06/2014 - 10:24

        Tax free return as well :)
        I have mine with ANZ so I would need to see if there's interest (taxed at 15%) but I imagine it to be minuscule

        • modsec802 on 20/06/2014 - 10:38

          With tax concessions and ANZ interest (3% p.a) it works out $6000 turns into $7185.84 which is a 19.76% return risk free after tax

        • slix_88 on 20/06/2014 - 10:53

          Yup. 17% doesn't include the return on investment which is in the ~3%p.a. range. I get about 20% so the investment for me is a no-brainer!

  • modsec802 on 20/06/2014 - 18:38

    The doc I read from ANZ says the government makes its contribution after I submit my tax return. Does this mean it is income tested in any way?

    • Malarkey on 21/06/2014 - 13:39

      I've never heard of that, I normally get my contributions around September-November from memory.

    • grasstown on 23/06/2014 - 18:57

      its not income tested.

  • cheesecactus on 22/06/2014 - 16:02

    So this financial year we get the 17%, but not for the 2014-2015 financial year?

    So from next month I should probably turn off my direct debit and stop putting money in the account? Riiiiiiiight?

  • [Deactivated] on 23/06/2014 - 11:38

    Done and done. Have maxed out the account for this financial year and will be looking forward to reclaiming use of the cash (plus the generous govt contribution) in mid-2015. A surprisingly good (yet unintentional) outcome of the federal budget!

  • donbot on 07/11/2014 - 13:58

    Has anyone got their 2013-14 contribution from the government? I'm still waiting, and yes - my tax return is lodged so not to delay it.

    • PoRKroLL on 07/11/2014 - 15:09

      Got mine mid last month. I'm with IMB.

    • WaywardOne on 08/11/2014 - 06:07

      I closed my account with MeBank a few months ago. I was told that the government co-contribution would be passed on…haven't received it yet

      • Mangoslushie on 08/11/2014 - 22:51
        +1

        I thought we weren't allowed to close it until 30 June 2015?

        • grasstown on 09/11/2014 - 15:17

          Buy a house and close it

        • WaywardOne on 11/11/2014 - 09:47

          You can close it if you wish to transfer it to super

          Also: I contacted mebank and they said the ATO would deposit the government contribution directly in to my superannuation account

        • jaybmate on 11/11/2014 - 12:56

          @WaywardOne: why would you do that, unless you are above 50 years of age? Pretty sure if you wait it out a year (or whenever the date is), you get it all back in free cash.

  • WaywardOne on 08/11/2014 - 06:06
    • Deleted -
  • grasstown on 22/11/2014 - 21:24

    Got mine a few days ago. Me bank

  • donbot on 25/11/2014 - 08:21

    Got mine yesterday - me bank.

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