Part of the 2017 Federal Budget was to enable first home buyers to use some superannuation savings towards purchasing a house. This proposal was legislated on 13 December 2017 so is now law.
What is the FHSS scheme?
From 1 July 2018, first home buyers will be able withdraw up to $30,000 voluntary super contributions (made since 1 July 2017) and their deemed earnings to use towards a house deposit. This makes saving more tax effective and potentially attracts a higher rate of interest.
How can I access the FHSS?
If eligible to withdraw money under FHSS, you need to complete an ATO application after 1 July 2018.
Once the withdrawal is made, you have twelve months to sign a contract to purchase or construct a home. Otherwise, a tax penalty will apply.
What do I do now?
If you are looking to buy or build your first home, read our fact sheet to learn more about the FHSS scheme. Assuming you meet the eligibility terms, you can then make additional contributions to your super in the usual way to put towards a house deposit after July 2018.
Of course, AvSuper Member Advice Consultants are happy to discuss this scheme with you and assist you in making the additional contributions.