First Home Super Saver and what it means for you

Want to know more about the First Home Super Saver Scheme?

As you may have heard, from 1 July 2018 individuals may be able to withdraw funds from superannuation to help fund a home deposit. So is the First Home Super Saver Scheme (FHSSS) right for you? We have provided the following to assist you in making your decision.

Am I eligible for FHSSS?

You may be eligible for FHSSS if:

  • You are aged 18 or over.
  • Have not utilised the FHSSS before.
  • Have never owned real property in Australia.

If you are deemed as suffering “financial hardship”.

How do I make a contribution?

Any voluntary contributions made to superannuation after 1 July 2017 may count towards FHSSS.

Voluntary contributions can be made via concessional contributions (before tax) or non-concessional contributions (after tax).

How much can I contribute?

You may be able to contribute up to $15,000 a year, and up to $30,000 in total under FHSSS.

Note: these contributions must be within existing contribution caps (e.g. $25,000 p.a. concessional contributions and $100,000 non-concessional contributions).

How will my contributions/earnings be taxed?

Concessional contributions are taxed at 15% inside the super fund, whilst non-concessional contributions will not be taxed entering the fund.

Investment earnings earned inside the fund on your voluntary contributions will be taxed at 15%.

When/how can I withdraw my funds from super?

You may be able to withdraw up to $30,000 plus investment earnings from your super fund from 1 July 2018 to purchase a residential premise.

You will need to apply for a withdrawal via the ATO who will then determine your maximum withdrawal amount and arrange for your funds to be released.

What kind of home am I eligible to purchase?

Under FHSSS you must purchase a residential premise that will become your home, examples may include vacant land (if planning to build), apartments and homes.

You must live in the premises for at least 6 month before considering renting this property out as an investment.

How long do I have to buy a home?

You will have 12 months after releasing your superannuation savings to sign a contract.

If you do not purchase a qualifying home within this timeframe you will be given two options:

  1. Re-contribute the released amount back into superannuation.
  2. Pay a tax penalty equal to 20% of the amount released.
If you would like more clarification about your current position and the First Home Super Saver Scheme or any general queries relating to superannuation, please contact one of our Super Specialists, complete your details below and we’ll be in touch or give us a call on 03 9835 8200.
About the Author
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Trent Goodey , Melbourne
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