Individuals looking to buy their first home may claim up to $30,000 of their super contributions through the First Home Super Saver (FHSS) Scheme, which aims to reduce pressure on housing affordability.
The scheme allows first home buyers to save money within their superannuation fund and accumulate faster savings with the concessional tax treatment of super. Eligible individuals who are able to use up to $15,000 of voluntary contributions per year, and a total of $30,000 contributions across all years. The FHHS amounts received will affect your tax for the year it is released to you; both the assessable and tax-withheld amounts from your FHSS payment will need to be included in your tax return.
The types of contributions eligible to go towards the FHHS scheme are voluntary concessional contributions and voluntary non-concessional contributions. Contributions can be made up to your existing contributions cap.
To be eligible for the scheme, individuals must:
- Be at least 18 years of age.
- Have not previously owned property in Australia, or have previously released First Home Super Saver funds.
- Have the intent to live in the property you use the funds to purchase as soon as practicable, for at least the first 6 of the 12 months of owning the property.
Individuals experiencing financial hardship may also apply for the scheme even if they have already purchased property in the past if their financial hardship has resulted in a loss of property interest. This may be applicable to individuals who have experienced events such as:
- Bankruptcy
- Unemployment
- Divorce
- Natural disasters
- Illness.
