House prices are wild. Here’s how your super could help
Between rising house prices, higher living costs, and the everyday juggle of being in your 20s or 30s, saving for a deposit can feel like playing a game where the goalposts slip further away every year.
But while the challenge is real, so are the tools that can help. And one of them has been quietly sitting there in the background for most of your financial life: your super.
Why saving feels so hard right now
Let’s be real: housing affordability is one of the biggest headaches for young Australians. Housing prices have grown faster than wages,1 rent keeps climbing, and nobody is out here saying groceries are getting any cheaper.
Most of us are balancing rent, bills, groceries, maintaining a social life, maybe a holiday fund, and somehow trying to save on top of that. Getting ahead can take creativity, consistency, and a bit of strategy. The good news? You don’t have to rely only on your bank account alone.
Your super can do more than you think
Most of us think of super as something we won’t touch until we’re comparing lawncare tips with the neighbours. But the First home super saver scheme gives eligible Australians the option to use part of their super contributions to help with a first home deposit.
Here’s what you need to know:
- You can make extra contributions into your super (before or after tax).
- Before tax contributions are generally taxed at a lower rate than what most people pay on their income.
- Later, you can withdraw those contributions, plus earnings, to put towards your first home deposit.
- The maximum amount an individual can release from their super under the First home super saver scheme is $50,000. A couple may be able to withdraw up to $100,000 combined, provided both partners are eligible and have made eligible voluntary contributions.
Here’s the full, detailed version.
It’s not a magic fix and it won’t replace saving altogether. But for some people, it can help a deposit grow faster than leaving everything in a regular savings account.
Small steps now can add up
You don’t need to make giant contributions for it to matter. Even putting away an extra $20, $40 or $50 when life allows can build up over time, especially with the way super is taxed.
And if you decide to contribute regularly, you’re doing two things at once: helping future you get into a home sooner and giving even further future you a boost for retirement.
You don’t have to figure this out on your own
If this sounds interesting to you, or if you just want someone to explain how it works without the jargon, we can walk you through it. Contact us whenever you’re ready.
No pressure, no complicated finance talk, just clear info to help you make a decision that feels right for you.
1 Based on Australian Bureau of Statistics Wage Price Index and Residential Property Price Index data, which show national property values have increased significantly faster than wages since 2020. Sources: ABS Wage Price Index: https://abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia
ABS Residential Property Price Indexes: https://abs.gov.au/statistics/economy/price-indexes-and-inflation/residential-property-price-indexes
CoreLogic Home Value Index: https://corelogic.com.au/research/hvi
This is general information only and doesn’t take into account your objectives, financial situation or needs. Before making a decision about CareSuper, you should consider if this information is right for you.