Unlocking the Secret to Faster Homeownership: Australia's Hidden Superannuation Perk

Australia's Hidden Superannuation Perk: A Millennial's Journey to Homeownership In Australia, a little-known government program offers a significant advantage to first-time homebuyers: the First Home Super Saver (FHSS) scheme. This scheme allows individuals to contribute up to $15,000 annually (with a total cap of $50,000) to their superannuation funds for the express purpose of a home deposit. The money grows tax-free, and upon withdrawal, includes a guaranteed interest rate currently set at 7.17% by the tax office—a rate that surpasses most bank offerings. Nick Cooke, a millennial project manager, is one of the few Australians taking advantage of the FHSS. "It's a great way to save on tax and save more quickly for a home," he says. However, the scheme's complexity has hindered its widespread adoption. Less than 10% of homebuyers utilized it last year. Nick Nikolaides, founder of the Pearler finance app, is addressing this issue. He's launching a new feature on his app to simplify the process, stating, "It allows people to understand the FHSS and actually use it." His aim is to make the FHSS more accessible to younger Australians. Cooke's experience shows the potential. By combining the FHSS with a traditional savings account, he's saved $125,000 toward his home, potentially two years ahead of schedule. The FHSS scheme, while complex, offers a significant opportunity for Australians to achieve homeownership sooner.