A gift that keeps on giving

Think outside the box when it comes to gifting family, and they'll reap the long-term rewards.

- VITA PALESTRANT

The festive season has arrived bringing with it its usual dilemmas: how to find the perfect gift for family members. Get it right and it will be joyfully received, get it wrong and it will go down like a lead balloon.

Sometimes cash turns out to be the perfect gift. Eye-watering property prices and high rents have outstripped the younger generation's ability to save enough for a home deposit. But rather than simply giving cash, consider helping a young person by contributing to their voluntary super contributions.

First Home Super Saver scheme

The First Home Super Saver scheme (FHSS) has the potential to give young fund members a meaningful leg up and see them owning their own home sooner. The scheme allows fund members to make personal voluntary contributions of up to $15,000 a year up to a maximum of $50,000 across multiple years.

“The FHSS can help first-time buyers overcome the challenges of entering the property market by taking advantage of the tax concessions in super,” says Colin Lewis, head of strategic advice at Fitzpatricks Advice Partners.

“It may accelerate the path to home ownership, but it’s critical to understand the eligibility as well as the withdrawal process before committing to the scheme.”

When it comes to saving for a first home, super doesn’t normally spring to mind because accessing money from super “is normally associated with something that happens a long way down the track, when you retire”, says Lewis.

“However, under the FHSS, you are able to make voluntary contributions to super and withdraw these amounts, plus associated earnings to put towards a deposit on your first home.”