First announced in the 2017-18 Federal Budget, the First Home Super Saver scheme is designed to encourage first home buyers by enabling super funds to house their savings for a deposit.
The Scheme allows first home buyers to salary sacrifice contributions into their superannuation fund. The tax advantages of doing so are intended to encourage them to save for a house deposit.
Both members of a couple can take advantage of the concession.
Super contributions made from 1 July 2017 may be withdrawn from 1 July 2018 for a first home deposit. Concessional contributions and earnings withdrawn will be taxed at marginal rates less a 30% offset.
Up to $15,000 per year can be contributed, $30,000 in total within existing caps.
[Update 11 May 2021] The contribution limit will be increased to $50,000., with legislation expected to take effect from 1 July 2022. (Budget 2021-22 Budget Paper No. 2 page 17).
Both members of a couple can combine savings for a single deposit to buy their first home together.
The FHSS Scheme applies to the concessional and non-concessional contributions (subject to the contribution caps) that an individual voluntarily makes through either personal contributions or through salary sacrificing arrangements, provided that those contributions are made within the existing contribution caps.
The Scheme uses the standard release authority rules in Division 131 (applying from 1 July 2018) of the Taxation Administration Act 1953 to facilitate the release of amounts from superannuation.
[Update: April 2019] Amendments to the scheme have been approved by parliament to take effect from 1 July 2019. They include:
- The FHSS scheme is limited to first homes bought within Australia only.
- You no longer have to wait to sign a contract until the first FHSS amount is released. A determination must still have been received.
- The 12 month period for action now dates from the date of the request for release (previously it was the date of release).
- First home super saver scheme
- Guidance Note GN 2018/1 First home super saver scheme
- Law Companion Ruling LCR 2018/5 – guidance on the operation of the First home super saver (FHSS) scheme.
- First Home Super Saver Tax Bill 2017
- Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Bill 2017
- ATO: Law Companion Ruling LCR 2018/D5
- ATO: First Home Super Saver Scheme
- How much can you save? Calculate it here
- Not your first home, but lost ownership due to financial hardship? See First home super saver scheme -– hardship application (Form NAT 74978)
This page was last modified 2021-05-12