First Home Saver Account FAQ
Is there a minimum time period that my account must be open?
When will I receive the Government Contribution?
Do I have to provide my Tax File Number when I apply for an account?
Can I open a joint First Home Saver Account with a friend or family member?
Can I salary sacrifice into this account?
Are there any circumstances where my money can be released early?
How long can the account remain open?
Who can make contributions to my account?
What is the maximum paid by the Government each year?
When is the Government contribution paid?
Is there a limit on contributions made to the account?
Who is eligible for this account?
Am I eligible for both the First Home Saver Account and the First Home Buyers Grant?
How long must I live in the home purchased with a deposit from a First Home Saver Account?
Can I use Internet Banking to view my account online?
When can I withdraw my savings?
What happens if I open a First Home Saver Account but change my mind soon after?
Is there a minimum time period that my account must be open?
First Home Saver Accounts are designed to encourage people to develop good savings habits and, generally, before you can withdraw funds, the account must have received contributions of at least $1,000 in each of four or more financial years (not necessarily consecutive).
When will I receive the Government Contribution?
Government contributions are paid directly into your First Home Saver Account after you have lodged your tax return and ME Bank has told the Tax Office how much you have put in.
Do I have to provide my Tax File Number when I apply for an account?
Yes, we are unable to open an account for you without it. We are, however, only authorised to use your Tax File Number for lawful purposes.
Can I open a joint First Home Saver Account with a friend or family member?
Only single account holders are allowed, however if you and a friend have two separate First Home Saver Accounts and want to combine your savings to purchase one property, you can.
I have opened a First Home Saver Account with another financial institution but want to switch to ME Bank's First Home Saver Account to enjoy a higher rate. Can I switch
Yes you can. Simply complete the First Home Saver Account application form and provide the details of your existing First Home Saver Account provider. By signing the authority to transfer, your former provider will transfer the funds to your new account with ME Bank and close your old one.
Can I salary sacrifice into this account?
Unfortunately not. All contributions must be made after tax.
Are there any circumstances where my money can be released early?
If you have transferred the account balance into superannuation, that money can only be released if permitted under superannuation law. In your superannuation fund, it will be treated like any other preserved superannuation money. In certain circumstances, superannuation can be released early due to severe financial hardship, compassionate grounds or terminal illness.
How long can the account remain open?
The account can remain open for as long as you are saving for your first home, but must be closed if you cease to meet the eligibility requirements (for example, you reach age 65).
Who can make contributions to my account?
Contributions may be made by you or by another party, such as a parent, friend or a relative, on your behalf.
What is the maximum paid by the Government each year?
The Government will make a 17.00% p.a. contribution on your first $5,500 deposited in each financial year, until your balance reaches $80,000. This means you could receive a contribution of up to $935 at the end of the financial year.
When is the Government contribution paid?
The Government contribution will be paid directly into your account, after you have lodged your tax return and ME Bank has submitted the relevant information to the ATO. If you do not lodge a tax return for that financial year, you will need to notify the ATO of your eligibility to claim the Government contribution
What is the tax rate?
Contributions will not be subject to tax when deposited into the account. Interest will be taxed at a rate of 15%.
Withdrawals will be tax free if they are made in accordance with the rules governing First Home Saver Accounts. First Home Saver Account balances will be exempt from the income and assets test for social security purposes.
Is there a limit on contributions made to the account?
There is a limit of $80,000 (indexed) on the overall account balance. If you reach the account balance cap, no further individual contributions can be made. You will still earn interest on your balance
Who is eligible for this account?
Those eligible to open a First Home Saver Account include:
- anyone who is at least 18 years of age, and under 65 years of age;
- anyone who has never owned a home in Australia that they have lived in;
- anyone who is an Australian resident for taxation purposes; and
- anyone who has never opened a First Home Saver Account with ME Bank. N.B. If you currently have a First Home Saver Account with another provider, you may be eligible to switch to ME Bank.
Penalties will apply if a person falsely declares that they are eligible to open an account. If you are unsure about your eligibility, visit the ATO website
I have an investment property but rent the apartment I live in. Am I still eligible for a First Home Saver Account?
If you have never lived in the property you purchased as an investment, then you are eligible for a First Home Saver Account.
If my name is on an existing home loan but not on the title of the dwelling, am I still eligible to apply for a First Home Saver Account?
Yes, if your name is not on the title of a dwelling, and you meet the additional eligibility requirements, you are able to apply for a First Home Saver Account.
Am I eligible for both the First Home Saver Account and the First Home Buyers Grant?
The First Home Buyers Grant is a separate scheme to the First Home Saver Account and will be available to individuals who are eligible (subject to the continuation of the Government Scheme). If you are aged over 18 and under 65 years, have never owned a home in Australia that you have lived in, then you may be eligible for a First Home Saver Account with ME Bank. Also, if you have a First Home Saver Account with another financial institution, you may be eligible to switch to ME Bank if you so choose.
How long must I live in the home purchased with a deposit from a First Home Saver Account?
You must live in your new home for at least six months within 12 months of settlement or if it's a newly built home, within 12 months of completion.
Can I use Internet Banking to view my account online?
Yes. You must register for Internet Banking to view your account online. To do this, call us on 1300 654 998. Once you're set up, you'll be able to view your account online, set up a Regular Savings Plan and view your deposit history.
How do I make contributions?
You can use Phone and Internet Banking to make contributions or you can call us on 1300 654 998.
If I open a First Home Saver Account and then decide to travel or move overseas, am I still able to make contributions?
Yes you can. You can keep your account open and continue to deposit money into your First Home Saver Account. However, you will not receive any Government contributions for that financial year if you are overseas for the entire financial year.
When can I withdraw my savings?
Withdrawal can generally only be made when contributions of at least $1,000 have been made in four separate financial years.
You will be able to withdraw your account balance tax free to buy or build a first home in which to live. The full amount will need to be withdrawn and the account closed. You will need to make the home your main residence for at least 6 months within the first 12 months after purchase or completion of construction.
If you are purchasing a property with another individual(s) who also has a First Home Saver Account, only one account holder needs to meet the four-year requirement. If one person meets this, then the other individual(s) can also withdraw their funds.
You can also close your account and contribute the full amount to a complying superannuation fund account at any time.
What happens if I open a First Home Saver Account but change my mind soon after?
There is a 14-day cooling-off period available with the First Home Saver Account, which means you have 14 days to change your mind, close your account and get any contributions back. You are then still eligible to open another First Home Saver Account at a later date. To do this, we require written notification via either mail, secure email (via Internet Banking) or fax.
If you let the 14-day cooling-off period expire, you are not able to access to the money unless you are over 60 years of age. If you are less than 60 years of age, you can transfer the money to your superannuation account; wait until you satisfy the conditions to withdraw the money to buy your first home; or wait until you turn 60.
The information on this website is of a general nature only and has been prepared without taking account of your objectives, financial situation and needs. Before acting on the information, you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
To obtain a copy of the Product Disclosure Statement for the Members Equity Bank First Home Saver Account, please call ME Bank on 13 15 63. You should consider the Product Disclosure Statement in deciding whether to acquire, or continue to hold, a Members Equity Bank First Home Saver Account.
The Members Equity Bank First Home Saver Account is issued by Members Equity Bank Pty Ltd (ABN 56 070 887 679 AFS Licence: 229500).
For information about First Home Saver Accounts generally you may wish to visit the ATO website or the ASIC website.
Related Links
- Saving Account FAQ
- Online Savings Account
- InterestME Savings Account
- First Home Saver Account
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