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Here’s what you need to know today

• As Treasurer Jim Chalmers prepares to hand down his pre-election budget tonight, the government have been briefing journalists to expect more ‘Buy Australian’ announcements as a response to US President Trump’s trade war. What exactly Australians should be buying, in a country with a hollowed out manufacturing sector, remains unclear. (Capital Brief)
  
  

• Australian building materials company James Hardie announced it would acquire US outdoor decking and railing company Azek for $14 billion, and shares fell 15%. Ouch! Investors believe that James Hardie is overpaying and that Azek shareholders, who will end up with 26% of the combined company, are getting a better deal. (AFR)
  
  

• Reports are that the Coalition is about to propose a national gas reservation scheme. This would require resource companies to keep a certain percentage of gas in Australia for domestic consumption rather than exporting it overseas. (ABC News)
  
  

• Western Australia has had a reservation scheme in place for years. Currently, 80% of gas extracted onshore must remain in Australia. Analysis from the Reserve Bank of Australia has found that since 2015, the WA reservation scheme has seen WA gas prices half of what the eastern states pay. (RBA)
  
  

• Tasmania’s salmon farming industry has been facing protests since a mass death event saw balls of salmon washing up on shore last month. Now the Australian federal government appears poised to rush through laws protecting the industry from environmental challenge, a move which is reportedly causing divide in the Labor party room. (AFR)
  
  

• Tesla’s run of bad news continues. Data from the US shows that owners trading in their Teslas have more than doubled from a year ago. (Quartz)
  
  

• Canada’s new Prime Minister Mark Carney has triggered a snap election by moving to dissolve Parliament. Canadians will now go to the polls on 28 April, with Carney expected to win another term for Justin Trudeau’s party. This is a big shift from the start of the year when Trudeau was facing terrible poll numbers and a likely election loss before he announced he would step down. (BBC)

What the…?

Growing up, we heard the story of the American woman who sued McDonald’s and won hundreds of thousands of dollars after spilling hot coffee on herself. (Which is real). Well, it seems there’s been inflation in hot drink lawsuits, because last week Starbucks agreed to pay an American driver a $50 million settlement after he spilled hot tea on his lap.

A jury found an employee failed to secure the lid of the drink, which when spilled left the driver with permanent disfigurement and requiring multiple skin grafts. (Quartz)

Investing is a lifelong journey

Here’s what you can learn today.

Tips for using the First Home Super Saver Scheme

Community Question: How can Australians best utilise the First Home Super Saver Scheme?

We put this question to Alex Luck, Financial Adviser and Director at Everest Wealth

The First Home Super Saver Scheme (FHSSS) is a tax-effective way for first-time homebuyers in Australia to save for a house deposit using their superannuation fund. If used correctly, it can help you save faster and pay less tax. Here’s how to make the most of it.

 What is the FHSSS?

The FHSSS allows first-home buyers to make voluntary contributions to their super fund and later withdraw those contributions + earnings to buy a home.

 Tax advantage: Contributions are taxed at 15% (instead of your marginal tax rate).
Higher savings growth: Super funds often earn more interest than bank savings accounts.

 How Much Can You Save?

• Up to $15,000 per financial year in voluntary contributions.

• Up to $50,000 total per person (was $30,000 before July 2022).

• For couples: Both can use FHSSS, meaning a combined $100,000 deposit is possible.

 How to Use FHSSS in 3 Steps

Step 1: Make Voluntary Contributions to Super

You must make extra contributions—your employer’s super payments don’t count. You can contribute in two ways:

Salary Sacrifice (Pre-Tax Contributions)

• You redirect part of your salary into super (before tax).

• Taxed at only 15%, instead of your marginal tax rate (up to 45%).

• Best if you're in a high tax bracket.

After-Tax Contributions (Non-Concessional)

• You deposit money directly into super (from your take-home pay).

• No tax on deposit, but earnings inside super are taxed at 15%.

Step 2: Apply to Withdraw Your Savings

• You can request a withdrawal from the ATO when ready to buy a home.

• Withdrawn amount includes:
   100% of salary-sacrificed or after-tax contributions.
   85% of pre-tax contributions (since 15% tax applies in super).
   Deemed earnings (calculated by ATO, based on a set formula).

 Important:

• Apply before signing a contract for a home.

• It may take 15-25 business days to receive your money.

Step 3: Buy a Home Within 12 Months

• You must sign a contract for a residential property within 12 months of withdrawal.

• If not, you can:
  Request an extension of 12 months.
  Return the money to super.
  Pay tax on withdrawn amount (if you don’t buy a house).

How Much Could You Save? (Example)

Scenario: Mia earns $80,000/year and saves $10,000 annually through FHSSS.

✅ Mia saves ~$5,868 more using FHSSS than a regular bank account.

 Key Considerations Before Using FHSSS

✅ Best For:

• Those with stable employment and high taxable income (bigger tax savings).

• People 2-5 years away from buying a home (to maximise savings).

❌ Not Ideal If:

• You plan to buy a house immediately (withdrawal takes time).

• You might not buy—funds stay locked in super if unused.

• You’re already maxing out concessional super contributions ($30,000/year).

Interested in speaking to Alex or another of our hand-picked financial advisers? Fill out the form on our website and we’ll put you in touch.

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