First Home Saver Account

You should consider opening a First Home Saver Account if you -

• only want to use your savings to buy or build your first home in Australia to live in ('buy your first home'), and
• are able to save at least $1,000 a year ($20 a week) in 4 separate financial years – they do not need to be in a row.
  
  A financial year is from July 1 to June 30.
  
  

To open an account, you must

• be aged 18 or over and under 65
• have a tax file number
• have never owned a home in Australia that you have lived in, and
• have never opened a First Home Saver Account before.

You can open another First Home Saver Account if you are transferring your savings from one First Home Saver Account to another.

If you are saving with others

• each person must open their own individual First Home Saver Accounts – each of you can then receive the benefits of having a First Home Saver Account.

You cannot open a joint account with someone else.

If you are unsure about your eligibility go to www.ato.gov.au

You can only withdraw your savings for 4 purposes

1. to buy your first home
2. as money you can add into super
3. as money you can withdraw as a lump sum if you are aged 60 or over
4. as money you can pay into a genuine mortgage
   
   

How to save with a First Home Saver Account

• You put money into your account the same way you would put money into a
• normal bank. You can do this at any time, and for as long as you need to save.
• You cannot salary sacrifice into your account.
• You do not need to put money in every year – but your account will only get
• Government contributions when you do.
• Once the total amount in your account reaches the relevant account cap, including Government contributions and income from investment earnings, you cannot put any more money into your account.
• You can keep your account open until:
  • you buy your first home
  • you are eligible to pay the money into a genuine mortgage; or
  •  you turn 65

When you turn 65 you must close your account and withdraw all of your savings, or move it into super.

The Government boosts your savings with contributions and a low rate of tax on the interest your savings earn. When you put money into your account the Government puts money in too.

• When you put a dollar into your account, the Government will contribute 17 cents.
• Any money you put in up to a total of the current contribution limit in a financial year will get this Government contribution – anything over this amount will not.
• Government contributions are paid directly into your First Home Saver Account after you have lodged your tax return and Hume Building Society has told the Tax Office how much you have put in.

You are not taxed

• on the money you put into your account
• on the Government contributions, or
• when you withdraw your savings for your first home.

There is a low rate of tax on the interest your savings earn

• Earnings on First Home Saver Accounts are taxed at 15% but this is paid to the Tax Office by the account provider.

Your savings earn high interest

• The savings in your Hume First Home Saver Account earn a high variable interest rate, helping you to get your first home quicker.
  
  

Your savings will not go down

• The Hume First Home Saver Account is a savings account – so what you put in, stays in. And, we don't charge any day-to-day fees which can also reduce your savings.

There are some fees charged in special situations which are set out in our fees and charges brochure which will be supplied to you.

An example of how savings can grow

If you save $100 a week for 4 years, your savings could grow to around $27,000, after Government contributions and interest. This is a general example based on an account earning 5% interest (after tax and any fees) and may be different from the actual interest rate Hume Building Society pays.

To find out how much you need to save use the calculator at www.moneysmart.gov.au

You should consider the following situations before choosing this account.

You decide not to buy a first home

If this happens you can choose to

• move your savings into super, or
• withdraw your savings as a lump sum if you are aged 60 or over.

You want to buy your first home before you have put $1,000 into your account in 4 separate financial years (they do not need to be in a row)

• You cannot use the savings in your account if you are buying your first home on your own.
• You can use the savings in your account if you are buying your home with someone else who has put $1,000 into their account in 4 separate financial years.

You have bought your first home but you haven't put $1,000 into your account in 4 separate financial years (they do not have to be in a row)

If this happens, you can choose to:

• use the savings in your account to pay towards a genuine mortgage over your first home after you are deemed to have put $1,000 into your account in 4 separate financial years (see 'Withdrawing your savings' under section 6 for further details). To do so, you must notify us within 30 days of acquiring your first home,
• move your savings into super, or
• withdraw your savings as a lump sum if you are aged 60 or over.

You don't have any money to put into your account

If this happens you can choose to:

• start saving again when you can
• move your savings into super, or
• withdraw your savings as a lump sum if you are aged 60 or over.

You haven't put $1,000 a year into your account in 4 separate financial years (they do not need to be in a row) and you want to close your account

You can choose to

• move your savings into super, or
• withdraw your savings if you are 60 or over.

You move overseas

You can keep your account open, and continue to put money into your account – but, you won't receive any Government contributions if you are overseas for an entire financial year.

You start living in a home you own*

If you start living in a home that you own, you will no longer be eligible to have an account. You must tell Hume Building Society and close your account within 30 days, or penalties will apply.

When you close your account you can either

• move your savings into super, or
• withdraw your savings as a lump sum if you are aged 60 or over.

_{* This section does not apply where you have bought your first home, but haven't put $1,000 into your account in 4 separate financial years, and intend to use the savings in your account to pay towards a genuine mortgage.}

You experience hardship

After moving your savings into super you may apply to access your super under the early release provisions. These include severe financial hardship, permanent disability or on specified compassionate grounds.

Withdrawing your savings

• You can only withdraw your savings to buy your first home after you have put at least $1,000 a year into your account in 4 separate financial years (they do not need to be in a row).
• If you are buying your first home with other people that have First Home Saver Accounts you can withdraw the savings from each account if just one of you has put$1,000 into your account in 4 separate financial years.
• You can withdraw your savings to pay towards a genuine mortgage over your first home after you are deemed to have put $1,000 into your account in 4 separate financial years (they do not need to be in a row). Once you have bought your first home, you may not deposit any further money into your account, however each subsequent financial year, including the financial year of purchase, counts towards the 4 year requirement (even though you haven't put $1,000 into your account in that year).

When you're ready to use your savings for your first home

1. Apply to Hume Building Society to withdraw all of the money from your First Home Saver Account.
2. To check that you meet the withdrawal rules go to www.ato.gov.au Close your First Home Saver Account.

Generally, you will not be able to open another First Home Saver Account.

You must live in your first home for at least 6 months

• within 12 months of settlement, or
• on completion of building construction.

We do not charge you any day-to-day fees on your account.

There are no general fees that apply to these types of account. There are some fees that are payable in special circumstances and these are set out in our fees and charges brochure which will be supplied to you.

To open an account

1. You will need to become a member of Hume Building Society (if you are not already). This can be done at the same time as you ask to open an account.
2. Fill out the application form.
3. Make an initial deposit into your account.

You cannot open a joint account with someone else.

If you change your mind

We provide a cooling-off period that lets you close your First Home Saver Account within 14 days, with a refund of your deposit.

• You will need to tell us in writing, by email or mail, within 14 days of opening the account.
• We will refund your deposit, minus any taxes we have paid, and any administration costs.

You can transfer your savings to another First Home Saver Account provider

If you do, we will transfer the savings in your account to your new provider, minus any costs.

Your old account will be closed as soon as your savings have been transferred.