The First Home Super Saver Scheme announced in Tuesday night’s federal budget will allow first-home buyers to deposit up to $15,000 a year in their superannuation accounts, and up to a total of $30,000, saving on tax.

These extra contributions, and any earnings, can then be withdrawn when ready to be used as a deposit.

Jason Harvey, a financial adviser from 360 Private Wealth in Bendigo, said it could equate to $9000 in tax savings.

“If you combine that with the First Home Owner Grant of $20,000 (for first-home buyers building in regional Victoria), you’re looking at a pretty good starting point for a deposit,” he said.

Mr Harvey said the First Home Super Saver Scheme was a much better option than an earlier proposal of allowing first-home buyers to use their superannuation for a deposit.

“Taking money out of superannuation, which is supposed to be for retirement, is a negative,” he said.

Mr Harvey said often people needed to adjust their lifestyle to be able to save.

“One of the big issues today is we generally spend too much,” he said. 

“There are lots of houses that I would call affordable but often our expectations are a little bigger than what’s available.”

Real Estate Institute of Victoria president Joseph Walton said that while the REIV supported the scheme in principle, the $30,000 cap on savings in super accounts would be of most benefit to buyers in regional Victoria, where the median house price was currently $377,000.

“The REIV does not believe the new measures go far enough in genuinely assisting first home buyers in entering the market,” he said. 

“Extending the First Home Owners Grant to include established properties would have been more beneficial for first home buyers.”