At present funds in a first home saver account must be held for at least 4 years before an individual can use the savings to buy a home. If the home is purchased within the 4 year period the funds must be transferred to a superannuation account.
It is now proposed that the balance of a first home saver account may be paid into an approved mortgage at the end of the 4 year period, rather than being paid into a superannuation fund.
The proposed change will apply to houses purchased after the Governer General has assented to the relative amending legislation later this year.
The Federal Treasurer, Mr Wayne Swan, presented the Rudd Government’s budget on 11th May 2010. The Treasurer indicated the budget was a “no frills budget” and it was. This series of posts incorporates a summary of matters within the Federal Budget, the Henry Review and other initiatives that have commenced in 2010 that may affect SME operators. Other than those items which have already commenced in 2010, none of the items contained within the budget, nor the Henry Committee Review, will become law until the budget and the various Henry Committee Review recommendations have been passed by the House of Representatives and the Senate, and signed by the Executive Council.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
Christie has written 799 awesome articles for us at Alan Lewis Accountants – BLOG
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