first home saver account2010328183837

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					first home saver account
fact sheet

Description                                                           You may still open a First Home Saver Account if you:
The First Home Saver Account (FHSA) is the perfect account for
                                                                      n	   Are transferring funds from one First Home Saver Account to
aspiring homebuyers wishing to save for the purchase of their first        another First Home Saver Account.
home.                                                                 n	   Closed a First Home Saver Account but the purchase or
FHSA holders are rewarded for saving with Government                       construction of your first home did not eventuate and you are
contributions of 17% on the first $5,000 (indexed annually) of             opening another First Home Saver Account within six months of
personal contributions made each year. This means that an FHSA             closing the first one.
holder contributing $5,000 for the 2008 / 2009 financial year will    n	   Closed a First Home Saver Account within the 14 day cooling off
receive a Government contribution of $850.                                 period.
                                                                      Your FHSA must be an individual account, not a joint account.
    Main Features
    High flat rate of interest                                        The benefits for you
    Interest paid on full balance                                     There are several incentives to open an FHSA:
                                                                      n	   The more money you save the more the Government will
    No fees and charges
                                                                           contribute (up to a certain limit each year).
    No minimum opening deposit                                        n	   Any earnings on the account are taxed at a low 15%, deducted
                                                                           from your account and paid to the Australian Tax Office (ATO)
    All depositing channels available
                                                                           by the Credit Union. The earnings are not included in your
    The Home Loan Establishment Fee is waived for FHSA                     assessable income for tax purposes.
    holders who have their Home Loan funded by Victoria               Opening an FHSA does not prevent you from applying for a First
    Teachers Credit Union                                             Home Owners Grant.
    A 17% tax-free Government contribution

                                                                      For more information, call one of our friendly Member
                                                                      Service Consultants on 1300 654 822.
To open a First Home Saver Account, you need to:
n   Be aged over 18 and under 65 years.
n   Provide your tax file number on the application.
n   Have never owned a home in Australia that you have resided in.
n   Have never previously had a First Home Saver Account.
Penalties can apply if you open an FHSA when you are not eligible.
first home saver account
fact sheet

How it works                                                                                      Buying your first home
n     To be eligible to withdraw the funds for purchase or construction                           n    When you have contributed $1,000 in at least four financial
      of a home, you must make personal contributions of at least                                      years, you may withdraw the funds from your FHSA.
      $1,000 in a minimum of four financial years (they do not need to                            n	   You must withdraw all of your funds at this stage and close your
      be consecutive).                                                                                 FHSA.
n     Contribute as little or as much as you like each financial year,                            n    You must make the payment towards building or buying your
      up to a maximum cap over the life of the account. The current                                    home within six months of withdrawing the funds and closing
      maximum cap is $75,000 however this will be indexed annually.                                    your FHSA.
n     If you choose not to buy a home, you may close your account at                              n    You must live in your new home for at least six months as your
      any time, but all funds will be transferred to your superannuation                               main residence. The six month period must start within twelve
      fund.                                                                                            months of:
n     The Credit Union will close your FHSA when you reach 65 years of                                 n		Your purchase settlement day; or
      age, and transfer the funds either into your Credit Union account
                                                                                                  	    n	 The building completion date.
      or to your superannuation fund.
                                                                                                  n    Contact the Credit Union (or other financial institution)
n     You will receive the Government contribution of 17% on the
                                                                                                       for information on obtaining a home loan. The Home Loan
      first $5,000 (indexed annually) of personal contributions
                                                                                                       Establishment Fee is waived for FHSA holders who have their
      each financial year, to a maximum of $850, when:
                                                                                                       home loan funded by the Victoria Teachers Credit Union.
	     n   You lodge your tax return, or notify the ATO that you are not
          required to lodge a tax return; and                                                     The graph below is based on the following assumptions:
	     n   The Credit Union has reported your personal contributions to                            n	 Personal contributions of $5,000 p.a. (monthly credits of approx
          the ATO.                                                                                   $417).
                                                                                                  n	 The account is held for five years.
                                                                                                  n	 Interest rate of 7% (visit our website for actual rates).
                                                                                                  n	 Interest calculated daily and credited quarterly (taxed at 15%).
                                                                                                  n	 Government contributions of 17% credited to the account in

                                                                                                     November of each year.
Projected savings                                                                                 n	 Interest paid on the full balance.

First Home Saver Account projected savings growth
                                                                                       Interest accrued               Govt contribution               Account holder contributions
                                        Personal Contributions                 $25,000
                                        Government Contributions                 $4,250
             $25,000.00                 Net Interest (after 15% tax)             $4,544
$ value

             $20,000.00                 Total                                  $33,794
                             Oct 2008                    Oct 2009                       Oct 2010                       Oct 2011                       Oct 2012                       Oct 2013
                                                                                              number of years saving
Important Note: It is a legislative requirement of this account that you cannot withdraw funds to purchase a home unless you have made personal contributions of at least $1,000 in a
minimum of four financial years. You may however close the account and transfer the funds to superannuation at any time.
This information does not take into account your objectives, financial situation or needs. Therefore you should firstly consider the appropriateness of this information and refer to the Terms
and Conditions or the relevant Product Disclosure Statement (PDS) before acquiring a product. These documents are available at our branches or by contacting us on 1300 654 822.

Head Office 277 Camberwell Road Camberwell VIC 3124 PO Box 338 Camberwell VIC 3124 Telephone 1300 654 822 Facsimile 03 9882 4348
                                      Branch Office 687 Mt Alexander Road Moonee Ponds VIC 3039 PO Box 210 Moonee Ponds VIC 3039
                                                                                              Victoria Teachers Credit Union Limited
VTAD2561 0908                                                                                   ABN 44 087 651 769 AFSL 240 960

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