Scott Pape's first take from the 2010 Federal Budget, breaking down the facts for young Aussies, middle Australia and the older generation.
Since the evening of the budget we have been in contact with the Housing Minister who has confirmed that FHSA holders will be able to use the proceeds to pay down their mortgage after the minimum term has been satisfied (this differs slightly from the video where I stated that you could remove funds from a FHSA before the 4 year period).
As I wrote in the Herald Sun on the 15/5/10:
I’ve been hot on First Home Saver Accounts (FHSAs) since they were announced.
Sock five grand away and the government will chip in 17 per cent – and many of these accounts pay market interest of 6 per cent. That’s a 23 per cent return on your money! The cherry on top is that your earnings are taxed at 15 per cent, rather than your marginal tax rate.
The only downside with FHSAs was that you effectively had to lock yourself out of the housing market for four years in order to satisfy the rules. Well, on Tuesday night Wayne Swan announced that the Government would allow you to buy a house before the qualifying period is up, and you can eventually use that money to pay down your mortgage.
Anyone thinking about buying a home would be silly not to open one of these accounts. In an era of sky-high property prices, every dollar you save counts.
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