Quick Summary of First Home Saver Account (FHSA)

The key features of the First Home Saver Account (FHSA) can be summarized in the following points:

- Must be between 18-65, never owned a home, to be eligible

- $1,000 initial deposit required to establish account

- First home owners grant available

- Accounts must be in place for 4 years with at least $1,00 contributed per year

- Post taxed annual contribution limit of $10,000 indexed

- The first $5000 contributed will effectively be tax free and will be implemented through a contribution from the government which varies according to the marginal tax rate of the individual

- Investment earnings will be taxed at a statutory tax rate of 15%

- Withdrawals will be tax free