Little interest in first-home savings accounts
Few financiers appear to be making plans to offer first-home saver accounts.First-Home Saver Accounts, to be introduced after October 1, will provide a 17 per cent government contribution on the first $5000 of savings each year. The tax rate on earnings will be 15 per cent and will be paid by the provider. Withdrawals will be tax free if the money goes to the purchase or construction of a first home.The Herald Sun reported just 14 entities, all niche outlets, have expressed any interest to the banking regulator.Fiona Reynolds, chief executive of the Australian Institute of Superannuation Trustees, told the newspaper many super funds had put the first-home saver accounts in the "too hard basket" and that the costs were too high.