Along with the First Home Owner's Grant (FHOG), the Federal Government has introduced a new savings scheme to assist the first time buyer get into the property market, the First Home Saver Account (FHSA).

What is it?

In short, the accounts offer tax breaks and government contributions to help Australians over the age of 18 (and under 65) to save for their first home.

• For the first $5000 you contribute to the account each year, the government will contribute 17 percent. (Which works out to be $850),
• There is no minimum opening deposit,
• Investment earnings (interest) will be taxed at 15 percent
• Withdrawals will be tax-free when used to purchase a first home.
• There is a $75,000 cap on the account.
• You must deposit $1000 for each of four financial years before you can withdraw the money.
• It is an individual, not a joint account.

Are you eligible?

Apart from being Australian and between the ages of 18 and 65, to be eligible for the FHSA you must live in the property for which you use the funds for at least six months of the first 12 months from purchase or completion of the property.

How do you use it for your home deposit?

You have six months to use the money from the account once you've withdrawn it to buy or begin building your first home. All the money has to be withdrawn at once and the account closed.

If you decide not to buy a house with the funds, you can't just withdraw and keep the money from the account. Instead, you must put it towards your superannuation.

Where can I go to open a FHSA?

A number of banks and other deposit taking institutions offer these accounts. The Australian Prudential Regulatory Authority (APRA) maintains a list of institutions offering FHSA's - click here to find out where you can open an account.

What should I look for in an FHSA?

Consumer group Choice has compared a number of FHSA's and has a list of accounts which meet their benchmark for terms and conditions. Click here to see who makes the grade.

As with any other account, each provider offers different conditions, so read the product disclosure statement before you sign up.

For more information on FHSA's, click here to visit the Government's FHSA website.