First announced in the 2017-18 Federal Budget, this is a scheme to encourage first home buyers by enabling super funds to house the savings for a deposit.
From 1 July 2017, the Scheme will allow first home buyers to salary sacrifice 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 will be able to 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Super contributions made from 1 July 2017 may be withdrawn from 1 July 2018 for a first home deposit. Concessional contributions and earnings withdrawn will be taxed at marginal rates less a 30% offset.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.
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.
The measures have been approved by parliament.
- First Home Super Saver Tax Bill 2017
- Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Bill 2017
- ATO: First Home Super Saver Scheme
- Reducing pressure on housing affordability – Minister’s Media Release 9 May 2017
- How much can you save? Calculate it here.
This page was last modified 2017-12-15