The First Home Super Saver Scheme provides the opportunity to use your eligible voluntary superannuation contributions toward the purchase of your first home.
How does it work?
Under the scheme, you can make voluntary contributions (both before-tax concessional and after-tax non-concessional) into your super fund to save for your first home. Provided you are eligible, you can then access these funds at a later date to use toward the purchase of your first home.
You can apply to have up to $15,000 voluntary contributions released in any one financial year under the scheme, with a maximum of up to $50,000 across all years of utilising the scheme. Important: you can only request a release under the FHSS once.
Check your eligibility.
To use the scheme, you must satisfy all of the eligibility criteria:
- You’re 18 years old or older when requesting a FHSS determination or a release of money under the FHSS scheme. However, you can make eligible contributions before you are 18 years of age.
- You’re a first home buyer, having never owned property in Australia – this includes an investment property, vacant land, commercial property, a lease of land in Australia, or a company title interest in land in Australia (unless we determine you have suffered a financial hardship).
- You intend to occupy the property you buy as soon as practicable and for at least 6 months within the first 12 months you own it after it’s practical to move in.
- You have not previously made a FHSS release request.
How to get started.
You can start saving under the FHSS by:
- Entering into a salary sacrifice arrangement with your employer to make voluntary concessional contributions
- Make voluntary personal super contributions
According to the ATO:
“There is no need for you to notify your employer, super fund or the ATO before making contributions for FHSS purposes. Contributions you make for FHSS purposes are not accounted for separately in your super account(s), and you’re not required to use them for the FHSS scheme. If you end up not accessing them under the FHSS scheme, they remain part of your super interest.”
The FHSS scheme is a smart way to start saving for your first home.
It’s strongly recommended to thoroughly read the official guide on the ATO website, as well as speak to a mortgage broker and accountant.