Media Centre
28 Jul 2010
ME Bank’s First Home Saver Accounts offer even more value
Recent changes to the First Home Saver Accounts make saving with ME Bank even more appealing
The Federal Government has increased the Account Balance Cap and Contribution Threshold on First Home Saver Accounts in line with Average Weekly Earnings as it promised when the savings product was first introduced in October 2008.
The First Home Saver Account “Account Balance Cap” and “Contribution Threshold” were raised effective from 1 July 2010.
| Old | New (effective 1 July 2010) | |
|---|---|---|
| Account balance cap | $75,000 | $80,000 |
| Contribution threshold | $5,000 | $5,500 |
| Maximum government contribution (remains at 17% p.a.) | $850 | $935 |
The Contribution Threshold is defined as the amount that a First Home Saver Account customer can put into the account in a financial year that will receive the additional 17% p.a. Government contribution.
These changes follow an announcement in the May Federal Budget by the Government that it intended to introduce legislation that would allow first home buyers, who have a First Home Saver Account, to use the cash in this concessionally-taxed superannuation-style account, to pay into their mortgage after the end of the minimum qualifying period if the house is bought in the interim.
This change has not yet been legislated.
Currently, if you buy a home before the four-year qualifying period is up, the balance of the First Home Saver Account will be compulsorily transferred into your superannuation account. ME Bank Group Executive Brand and Product Ian Hendey welcomed the indexed increases as they made ME Bank First Home Saver Accounts even more attractive.
“You can currently earn a high 6.25% p.a. interest rate on every dollar you deposit in an ME Bank First Home Saver Account. There are no account keeping fees. Contributions are tax free, while investment earnings (or interest) are taxed at the concessional rate of 15%; not your marginal tax rate,” he said.
“It is worth noting that anyone opening a First Home Saver Account this financial year could have access to their money as soon as July 2013, if they were to make contributions before June 2011, 2012, 2013 and in July 2013,” he added.
Media Enquiries
Ian Hendey
Group Executive, Brand and Product
03 9605 6499
www.mebank.com.au
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