The number of Aussies taking advantage of the government's First Home Saver Account scheme is much lower than expected, and the cost of the scheme has now been revised downwards.
Launched last October the accounts were seen as a way of helping Australians buy their first home, and was expected to cost the federal government $130.2 million in contributions in 2008/09.
Treasurer Wayne Swan has confirmed the expected cost of government contributions had been revised down to just $26.2 million.
The scheme allows first homebuyers to save their funds with tax breaks and government top ups. For every dollar you save, the government will contribute 17 cents, meaning the amount in your account can creep up very quickly.
Once you have held the account for at least four years and deposited a minimum of $1,000 per year you can access the money for your first home. Under the scheme, the government contributes up to 17 per cent of every dollar saved, while banks at which the accounts are held also pay interest.
But there are strict eligibility criteria.
Account holders must be 18 years or older and are required to deposit at least $1,000 a year for four years, while the money can only be used to buy or build a home.
The money must be transferred into a superannuation account if it is not used to buy a home.