In May 2017, the Government announced that from 1 July 2018 eligible individuals will be able to apply to withdraw voluntary contributions made to super after 1 July 2017 for a first home. The introduction of the First Home Super Saver Scheme (FHSSS) represents an opportunity for first home buyers, to save towards a first home in the concessionally-taxed superannuation environment.
Eligible Australians can apply for a release of voluntary superannuation contributions of up to $15,000 in any single financial year, and a maximum of $30,000 over the life of the scheme.
Voluntary contributions include:
- undeducted (non-concessional) personal contributions
- deducted (concessional) personal contributions
- salary sacrifice contributions.
The FHSSS maximum release amount is the sum of your eligible contributions and associated earnings. This amount includes:
- 100% of eligible non-concessional contributions
- 85% of eligible concessional contributions
- associated are earnings calculated on these contributions using a deemed rate of return – this is based on the 90-day Bank Bill rate plus three percentage points (shortfall interest charge rate).
Most superfunds are ready to receive contributions for the FHSSS. The method for making contributions for the FHSSS is mostly the same as for regular super contributions – and they may be marked specifically as FHSSS contributions depending on the superannuation fund.
Eligibility to withdraw your contributions for FHSSS and the amount available will be determined by the ATO.
From 1 July 2018, members can apply directly to the ATO for the release of contributions under FHSSS.
For more detailed information on the FHSSS, including eligibility criteria, please visit the ATO website, https://www.ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme/
