First Home Owners Super Saver Scheme

Table of Content

• I have a HECS/HELP student loan debt. Will this be taken out of my first home super saver amount?
• First home super saver (FHSS) scheme
• Request a call back from an AMP business development manager
• Your tax return
• First Home Super Saver (FHSS) Scheme – Updated 2022
• What is the First Home Super Saver (FHSS) Scheme?

We will pass your details to a Mortgage Choice broker advisor so that they can get in touch with you. Our Privacy Policy explains how we store personal information and how you may access, correct or complain about the handling of your personal information. If you’re considering applying for the First Home Super Saver Scheme, there are certain things you should know. Some of the information on this website applies to a specific financial year.

Once you have requested a release you can't request another one, even if you have requested an amount less than your FHSS maximum release amount. You can request a determination on more than one occasion but can only request a release once. Not use your payslips to complete your request for a FHSS determination. You should apply before you start saving, so that we can determine if the hardship provision applies to you.

I have a HECS/HELP student loan debt. Will this be taken out of my first home super saver amount?

If having more money in retirement sounds good to you, you might be interested to know that there are more ways than one to top up your super. You can manage your investments and view your account balance 24 hours a day, 7 days a week. If you are looking to build your new home rather than buy an existing property or renovate existing home, you need a different type of home loan. We don't pay profits or dividends to shareholders, so the money we make goes back into the fund. The FHSSS can only be used to buy your first home if it is located in Australia. It cannot be a premises that is not capable of being occupied as a residence, a houseboat, a motor home or vacant land .

Firstly, just because the government has said its legal, doesn’t mean your super fund will allow you to do it. The costs and risks involved for super funds may make it implausible for some funds to offer this. Continuing on from the theme of buying your first home, I thought I would do a quick blog on the super saver scheme the government has passed through parliament. They’ve done such a good job on this, that nobody knows about it, or how it works….

First home super saver (FHSS) scheme

If you don’t sign a contract to purchase or construct a home within 12 months, the ATO will automatically grant you a 12 month extension. You can also recontribute your savings into your super account or retain it and pay tax on the money . Under the FHSS scheme, if you don't end up buying a home within the 12-month timeframe , you must re-contribute your before-tax contributions back into your super account. You will not be able to access these funds again under the FHSS scheme.

Amounts that are COVID-19 early release of superannuation re-contributions. By completing a First home super saver scheme – hardship application form. The $30,000 limit on eligible contributions applies to requests for FHSS determinations made before 1 July 2022. If there is an error in your FHSS determination you can correct this by requesting another determination, provided you have not signed a contract or requested a release.

Request a call back from an AMP business development manager

The government will allow first home buyers to raid up to $50,000 of their own contributions to their superannuation fund to help them get on the property ladder at a cost of $25 million over four years. We have a range of bank accounts to help you manage your money, your way. Check out AMP Bank Everyday and savings bank accounts interest rates & fees here. Using your super account to save for a home deposit is an alternative to using a bank account to save for your first home. If you change your mind, your savings will remain in your super account and go towards growing your retirement savings. If you’re considering purchasing your first home, you may be able to withdraw some of your personal super contributions to put towards a deposit.

Under the First Home Loan Super Saver Scheme, first home buyers can withdraw a portion of their extra super contributions and use them a deposit for a property. Yes, once the savings have been released, you have up to 12 months to sign a contract of sale or construct a home. There are a few steps in withdrawing your voluntary superannuation contributions from your fund, and your first point of call is actually the ATO—not your superannuation fund. There are different caps to concessional and non-concessional contributions, which you can discuss with your accountant and financial adviser.

You must be a first home buyer and intend to live in the property you purchase, or intend to as soon as practicable after buying. Purchasers are also obligated to live in the property for at least six months within the first 12 months you own it, after it’s practical to move in. The information provided on this website is for general education purposes only and is not intended to constitute specialist or personal advice. This website has been prepared without taking into account your objectives, financial situation or needs. The maximum amount you can withdraw also takes into account the $15,000 yearly limit and $30,000 total limit to contributions across all years. You can’t count any contributions your employer or someone else makes on your behalf.

The earnings on any money you’ve deposited will also be taxed at this rate. Given that most Australians pay 30% or more in tax this is a big saving. Recontribute the total amount of funds back into your superannuation. This needs to be a non-concessional contribution and be at least equal to your assessable FHSS released amount, less any tax withheld.

But with the First Home Super Saver Scheme, you are making extra contributions and then withdrawing them, so you don’t have to pay it back. Sabrina entered a contract to build the house within 12 months of the FHSSS funds being released, so she is ok. The maximum amount of money able to be released through the First Home Super Saver Scheme introduced in 2017 will be increased from $30,000 to $50,000 of savers’ voluntary contributions.

You will need to include the FHSS amounts you receive from the ATO as income when you fill in your yearly tax return. If you have signed your contract more than 14 days before you request the release of your FHSS amounts, then you will be subject to FHSS tax. You will also need to include the year and amount of any super tax deductions you have or intend to claim in your tax returns. You will also receive an amount of earnings that relate to those eligible contributions. There are rules about which contributions will be included in your release amount, based on when the contribution was made and whether it is concessional or non-concessional.

You must provide evidence with your application that demonstrates the link between the loss of your property and your hardship event. Finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of banks, insurers and product issuers. We value our editorial independence and follow editorial guidelines.

Give you full transparency, and personalised advice with the best loan products in your situation. The Super Home Buyer Scheme does not have any limits on the value of the property you can buy. With the First Home Super Saver Scheme, the home you’re buying should not be worth more than $750,000, including the land it is on.

Before you start making contributions into the FHSS Scheme, you should contact your super fund to make sure they’ll release your contributions when you’ve found a home you want to buy. Voluntary contributions from your take-home pay (after-tax) have already been taxed, so they don't get taxed again when you contribute them to super. Salary sacrifice contributions (before-tax) get taxed at 15% when you contribute them to your super account. Depending on whether you make before-tax or after-tax contributions, you might not be allowed to withdraw the full amount to use for your deposit. The First Home Super Saver Scheme allows first home buyers to make contributions to their super, then withdraw those contributions for a deposit to buy or build a home to live in.

You can only use the money you have contributed as a part of the scheme, not the money that is already in your fund. If you change your mind and decide not to buy a first home, your FHSSS super contributions will remain in the super system until you retire. Rules and limits for the FHSSS apply to an individual, which means both members of a couple planning to buy their first home are eligible to use the scheme to save for a home deposit. Although you can make eligible contribution before you are aged 18, you must be at least 18 years of age to apply for the release of your contributions under the FHSSS rules. Because it will help first home buyers save faster with the concessional tax treatment of super.