The First Home Super Saver scheme encourages first home buyers by enabling them to use their super funds to to save for a house deposit.
First home buyers can salary sacrifice contributions into their superannuation fund up to a total limit of $50,000 from 1 July 2022.
Both members of a couple can take advantage of the concession.
Under the scheme, super contributions made from 1 July 2017 may be withdrawn any time from 1 July 2018 for a first home deposit. Concessional contributions and earnings withdrawn will be taxed at marginal rates less a 30% offset.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.
Contribution Limit Increase To $50,000 (from $30,000)
The contribution limit under the Firest Home Super Saver scheme is $50,000 taking effect from 1 July 2022.
Press release here.
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 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).
See further:
- 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
Further information
- 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 2022-02-11