Buying a house for the first time? Find out which tax benefits you could be taking advantage of.

Buying your first home is an incredibly exciting time. There are suddenly so many choices around what to buy, like should you buy from a new development or a place that has had some time to age. With all the paperwork and the unexpected costs that pop up, it can also be an expensive and stressful venture. The good news is that there are some great tax benefits you can claim to help ease the burden on your wallet and make buying your home a memorable experience for the right reasons. Read on for some of the latest changes in homebuyer tax legislation and how you can take advantage of them.

First Home Super Saver Scheme

 From July 1, 2017, if you’re saving to buy your first home you’ll be able to salary sacrifice from your pre-tax income and make voluntary payments into your superannuation fund. These payments are limited to $30,000 in total, with no more than $15,000 in contributions allowed in any one year.

From July 1, 2018, you’ll be able to withdraw that cash, along with any accrued earnings, to use for a deposit on a house. There’s more good news, too – those contributions and earnings will be taxed at just 15 percent, and withdrawals will be taxed at 30 percent below the usual income tax rate. However, any amount voluntarily deposited in a super fund will be included in the $25,000 concessional cap (contribution limit), which also includes the 9.5 percent compulsory super contributions by employers.

So, what does that mean for you in real terms? Any savings that you have inside a super fund will benefit from lower taxes than if the money was saved elsewhere, such as in a bank account.

Homeowners by state – winners and losers

 Some of the changes to state legislation have created favourable conditions for those looking to buy their first home, while other states are tightening the budget belt. Take a look at what’s in store.

NSW

The outlook is positive for NSW homebuyers, with stamp duty being cut for first timers buying properties up to $650,000. People buying homes up to $800,000 will also benefit from lower stamp duty tax rates.

VIC

In Victoria, first timers buying a home up to $600,000 already get a 50 percent exemption on stamp duty. There’s more good news for those folks too: in July this year, it will be waived completely.

WA

First homebuyers in Western Australia will lose access to a $5000 grant boost six months early, as the state government is tightening its budget. The $10,000 first homebuyer’s grant will also be cut after June 30, 2017.

TAS

In Tasmania, the state government will extend the $20,000 first homebuilder’s grant for further 12 months. This is expected to benefit not only homebuyers but also boost jobs in the construction industry.

SA

The South Australian state budget is set to include a $7.6 million commitment to extend stamp duty concessions for off-the-plan apartments until June 30 next year. That means homebuyers will be eligible for stamp duty discounts on off-the-plan apartments anywhere in the state for the next year. This is great news for those living further outside the city, as these concessions previously applied only to properties in the CBD and inner city suburbs.

Looking for more tax advice? Find an accountant near you.