The First Home Super Saver (FHSS) scheme was introduced as part of the 2017-18 Federal budget. Commencing 1 July 2017, eligible participants have been able to make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into their super fund to save for their first home. Superannuation contribution caps still apply with the annual financial year cap on concessional contributions being $25,000. To qualify for the FHSS scheme you must:
- be 18 years or older;
- not have previously owned property in Australia, including an investment property;
- not have previously released FHSS scheme funds;
- either live or intend to live in the premises they are buying; and
- intend to live in the property for at least six months of the first 12 months they own it, after it is practical to move in.
As from 1 July 2018, participants in the scheme can apply to have their FHSS scheme contributions, together with associated investment earnings, released to assist with the purchase of their first home. Participants can apply for the release of voluntary contributions of up to $15,000 from any one financial year and up to a total of $30,000 across all years. There are two key things to remember:
- Don’t sign the contract to purchase or construct the home until after the money has been released or FHSS tax may apply.
- After the release has been approved, it will take approximately 25 business days for the participant to receive the money.
If a couple buy a house together, both can take advantage of the scheme, potentially saving up to $60,000 between them to put towards the purchase of their first home. Once the funds are released, participants have up to 12 months to sign a contract to purchase or build a home. For further information you should visit the ATO website on: https://www.ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme/ Important Disclaimer: The content of this publication is general in nature and for reference purposes only. It is current at the date of publication. It does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.