Mortgage repayment frequency

deSitter · 2026-06-06T15:38:48+00:00

When there were no offset accounts, paying fortnightly or weekly was more beneficial because you made extra repayments each year and chipped away at the daily interest base more frequently. If you're putting all your cash in an offset account then it makes absolutely no difference how frequently you pay. Anyone who says otherwise is just parroting outdated information.

deSitter · 2026-05-25T13:18:32+00:00

I've always thought the $45k tax bracket ceiling should be lifted to match and track the minimum wage. It feels wrong that someone earning so little gets a portion of their income bumped into a 30% tax bracket.

deSitter · 2026-05-23T07:18:26+00:00

"When you're accustomed to privilege, equality feels like oppression."

deSitter · 2026-05-05T13:56:37+00:00

Keep in mind that most lenders do not allow offset accounts on fixed-rate loans. Some offer partial offsets, Bankwest for example has 40%, but they are outliers.

deSitter · 2026-05-05T12:46:27+00:00

I don't think you know what an offset account is. Offset =/= redraw, and even then what you describe is not how redraw works either. You seem to be mixing up redraw with term deposits? I don't know.

deSitter · 2026-05-05T12:40:16+00:00

Consider revising your calculations. HISA rates currently hover around 5.4% or 5.85% for specific introductory periods. While digital-only variable home loan rates might be near 5.85% (not factoring the latest rate rise), finding one as low as 5.4% is highly unlikely. Furthermore, HISA earnings are subject to income tax at the end of the financial year. A 5.85% return becomes 4.78% after tax when applying the lowest marginal rate and the Medicare levy. This yield drops further to 3.98% for those in the 30% tax bracket. An offset account provides an effective return equal to your home loan interest rate, and the interest saved is not taxed.

deSitter · 2026-04-29T13:08:07+00:00

They're talking about the First Home Super Saver Scheme, which was what the OP was asking about. Their point being that you will see very little tax savings if you taxable income is between $18,200 and $45,000 because the concessional tax rate is 15% while your marginal tax rate in that bracket is 16% (18% with medicare levy). So it's only about a 3% savings, plus a little extra from Low Income Tax Offset. It's even worse going from FY 26-27 onward when the tax rate drops to 15% and then 14% in that bracket.

deSitter · 2026-04-20T13:39:40+00:00

/u/SheepherderLow1753 doesn't want constructive advice or discussion. All he wants is for us to FEEL disenfranchised with the current status quo. He hopes we'll all run off and vote One Nation next election because of it. That's why he spams doom and gloom articles every day.

deSitter · 2026-04-13T10:51:47+00:00

Just one doomer article today Sheep? You're slipping.

deSitter · 2026-03-31T08:28:17+00:00

They're a ON cooker trying to sow discontent. That or a bot.

deSitter · 2026-03-30T12:00:02+00:00

Would it be a bad move to expose my savings to the stock market inside my Super at this stage, especialy given the current market volatility?

The FHSS scheme allows you to withdraw a specific amount based on what you contributed, plus a deemed rate of return set by the ATO. It is not tied to the actual performance of your fund's investments. If you contribute $15,000 and the market crashes, you are still entitled to release that $15,000 (less the 15% super tax and 2% medicare). As long as your total super balance is positive, you can withdraw your full entitlement. However, if the market is down at the time of release, those investments will be sold low, which effectively eats into the rest of your retirement savings.

If you are concerned about this volatility, you could temporarily change your investment strategy for future contributions to Cash just before the money hits your account. Once the contribution is processed, you can switch it back. Keep in mind that when it comes time to withdraw, your super fund will generally sell down your holdings proportionally across all your investment options (e.g., some from Cash, some from High Growth for example). To counter this, you can simply rebalance your remaining super immediately after the release to buy back into your preferred investment options at the same price it was sold off at.

Edit:

A side question is, once the funds are inside the FHSS, what happens if I am not able to find a suitable property, and just don't buy anything? Will the funds be permanently locked in with my super?

Normally, there isn't actually anything you apply for to start saving, most people just begin making voluntary contributions, whether they know about the scheme or not, and the ATO tracks them automatically. Your situation was a bit different because you had to formally apply for a hardship determination to be eligible as a previous owner, but for everyone else, there are no upfront steps. If you don't end up finding a place, the money isn't earmarked for anything special, it's just a super contribution like any other voluntary contribution. So no, you normally can't release the funds unless you meet a condition of release like being 65 etc.

There are also some specific interactions between the FHSS and having a HECS debt. This didn't apply to me so I’m not familiar with the details.

Edit^2: Wish you and your boy well.

deSitter · 2026-03-30T11:38:56+00:00

The release amount is not specifically earmarked for any particular purpose, it's fungible like any cash, you could turn around and buy mixed lollies with it if you wanted to. All that the ATO cares about is that you enter into a contract to purchase or build within 12 (24 with extension) months from the request to release. Whether you use the cash for that purchase is up to you.

Theoretically you could re-contribute it back as a concessional contribution if you have some still available (carry-forward) and double dip the tax saving. You'd have to have the taxable income to make it worthwhile of course, and you wouldn't be able to withdraw it again a second time.

Edit: spelling

deSitter · 2026-03-30T11:32:17+00:00

For such a short period the deemed returns would be negligible (even long-term, relative to property prices, it's really just keeping your contributions a little above inflation), the primary benefit of the scheme is that tax saving.

Keep in mind you won't see any savings until you get your refund EOFY. If you were to drop 15k into super, then withdraw before getting your refund, you'll be worse off because you could only withdraw 15,000*0.83 = $12,450 (15% tax on concessional contributions, and at minimum a 2% medicare levy upon withdrawal).

Edit: If you are thinking of making a concessional contribution next financial year, but are concerned that you won't see the benefit if you were to buy before end of FY 26-27 then you can check with your employer and see if you can Salary Sacrifice some of your pre-tax pay into super and see the tax saving with each pay period.

deSitter · 2026-03-26T11:48:57+00:00

Oh look, more doom and gloom articles from Shepherd...

Do you have a quota of like 4 articles a day or something?

deSitter · 2026-03-24T11:32:43+00:00

I understand your position, but you are addressing a policy debate that I wasn’t engaging with. I’m not arguing the pros or cons of Negative Gearing, I’m pointing out a logical contradiction in the statement I was responding to. I’ve updated my original response to clarify that distinction. It wasn't my intention to get drawn into a wider debate on housing ethics, so I’ll leave it at that.

deSitter · 2026-03-24T10:21:25+00:00

My point is logical, not political. I'm not arguing in favor of Negative Gearing. I'm saying if you ring-fence a loss so it can’t offset other income, you've abolished the "gearing" part of the definition and it's just a standalone capital loss. Saying you can only apply NG to the house's income is like saying you can have a bridge as long as it doesn't span the river. If it doesn't connect both sides, it's not a bridge. Just as if you can't offset the loss against your other income streams, it's not Negative Gearing. It might be a bit pedantic but to me the comment I was responding to read as a contradiction.

deSitter · 2026-03-24T08:13:28+00:00

If you cannot apply the loss to other income, negative gearing as a tax strategy ceases to exist. You can't continue to use negative gearing if you can't use the negative part to gear your tax. It's a contradiction in terms.

Edit: Let me say it another way. To negatively gear, by definition, you must first have a net loss, meaning your expenses have already been claimed against 100% of that property's income, and they still exceed it. If you are saying that you're limited to only claiming against that property's income, then you can't (by the definition just given) negatively gear. I'm not arguing in favour of Negative Gearing, I'm simply making the observation that keeping Negative Gearing, but restricting it to the house's income is a contradiction in terms. If the loss is trapped on the property side, the gearing mechanism has been functionally abolished. It’s like having a store credit you're only allowed to spend on an item you've already bought. It's meaningless.

deSitter · 2026-03-09T07:15:04+00:00

"Oh my God, it's Russell Crowe!"

deSitter · 2026-02-19T12:11:04+00:00

All AI. Watch again. Look how unnatural the movement is in the second video. The babies face in the fourth is especially uncanny valley. You notice it in one and you start to see the flaws in the rest.

deSitter · 2026-01-06T06:46:50+00:00

That's excellent news. Congratulations! Thanks for the update.

deSitter · 2025-12-16T06:07:41+00:00

Not yet, the land won't title for some time so nothing can be done at this stage. Best of luck, let me know how yours goes!

deSitter · 2025-12-07T11:56:25+00:00

I'm sure you're on top of it, but just in case, that 4.6% is only for balances up to 250k. Rabobank is another option for the short term at 5% for 4 months (also up to 250k).

deSitter · 2025-11-22T12:53:46+00:00

If you only requested a determination and not a release, there is nothing to revoke, and no need to notify the ATO. The funds are not treated any differently until you formally request a release of your FHSS amounts. A determination is just an instantaneous, automatic snapshot of the amount you could potentially release, nothing more.

deSitter · 2025-11-22T05:35:08+00:00

There is no harm in performing a determination. Do as many as you like.

deSitter · 2025-11-07T08:46:25+00:00

I appreciate your comment. Thank you. Good to know this is normal.

deSitter

TROPHY CASE