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First Home Super Saver Scheme

The First Home Super Saver (FHSS) scheme helps you save money for your first home by making contributions to your super fund.  You may be able to benefit from the tax treatment within super. 

About the FHSS scheme

As a first home buyer you can make voluntary contributions into super to help save for your home deposit.

From 1 July 2018 you can apply to withdraw your voluntary contributions made to super after 1 July 2017 together with deemed earnings to help purchase your first home.

How the FHSS scheme works

If you have never owned property in Australia, you can make concessional (before-tax) and non‑concessional (after-tax) contributions to your super:

  • concessional contributions include salary sacrifice contributions and personal contributions for which a tax deduction is claimed. These contributions are taxed at 15%
  • non-concessional contributions include any personal contributions from after-tax money

This money and associated investment earnings can then be withdrawn at a later date but only to help purchase your first home.

The benefit of saving through your super is that any concessional contributions and all investment earnings are taxed at 15% instead of your personal marginal tax rate.

Eligibility

To qualify for the FHSS scheme, you must:

  • be at least 18 years old at the time of the withdrawal
  • have never owned property in Australia
  • have not previously received a FHSS scheme payment

If you have previously owned property and have suffered a financial hardship that resulted in a loss of ownership of that property, you may be eligible for the FHSS scheme. 

Contributing to your super

You can make regular contributions by completing the Member contributions – payroll deduction form.

You can make a one-off after-tax contribution by completing the Optional post-tax contribution form

There are limits on how much you can contribute towards the FHSS scheme:

  • a single home buyer can make voluntary contributions of up to $15,000 per year, to a total maximum of $30,000
  • a couple can each make the above voluntary contributions together up to a maximum of $30,000 each

There are rules that apply to these contributions:

  • a first-in first-out rule applies which means that contributions you make in the first financial year are counted before contributions in a later financial year
  • if you make both concessional and non-concessional contributions, the non‑concessional contributions are withdrawn first
  • you can withdraw 100% of your non-concessional contributions and up to 85% of your concessional contributions

For more information on contributions, please refer to the How super works fact sheet.

Accessing your savings

From 1 July 2018 you can apply for the release of your savings through the Australian Taxation Office (ATO) via your myGov account.

Your request will take approximately 12 business days to process.  The ATO will determine how much you can withdraw based on your contributions and deemed earnings and will arrange for the money to be released from your super fund.

The maximum release amount is the sum of your eligible contributions, which includes:

  • 100% of eligible non-concessional contributions
  • 85% of eligible concessional contributions
  • associated (or deemed) earnings calculated on these contributions using the 90-day Bank Bill rate plus three percentage points

We will release the amount to the ATO who will then withhold the appropriate amount of tax and send the balance of the released amount to you with a payment summary.

The payment summary will show the released amount which needs to be included in your tax return for the financial year you request the release. The tax payable on this amount will receive a 30% tax offset.

You then have up to 12 months to sign a contract to purchase or construct a home. If you don’t purchase anything within this timeframe, you have the options to apply for a 12 month extension, recontribute the amount as a non-concessional contribution or keep the full amount and pay tax equal to 20% of the amount.

For more information please refer to https://www.ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme/  

If you think you may need financial advice, you can request an appointment online or call us on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday.