30/08/2021
First Home Super Saver Scheme to help first-homebuyers raise a deposit more quickly.
In the 2021/22 budget, the federal government also made changes to the First Home Super Saver Scheme to help first-home buyers raise a deposit more quickly.
The government is increasing the maximum amount of voluntary contributions eligible to be released under the scheme to $50,000 from $30,000.
Introduced in the 2017/18 federal budget, the First Home Super Saver Scheme lets first-home buyers save for a deposit inside their superannuation account.
It helps them save more quickly for a deposit faster, because of the concessional tax treatment of superannuation.
They can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into their super fund to save for a first home of up to $15,000 per financial year.
They can then apply to release those contributions and any associated earnings, with the amount of contributions that can be released currently capped at $30,000. From 1 July 2022, that amount will be increased to $50,000.
Voluntary contributions made from 1 July 2017 can count towards the total amount released.
To be eligible, first-home buyers must either live in the premises they are buying or intend to do so as soon as practicable, and also intend to live in the property for at least six months within the first year of ownership, after it is practical to move in.
The Australian Taxation Office notes eligibility is assessed on an individual basis, meaning couples, siblings or friends can each access their own eligible FHSS contributions to buy the same property.
The ATO website said first-home buyers can start saving under the FHSS scheme by entering into a salary sacrifice agreement with their employer or by making voluntary personal super contributions.
When first-home buyers are ready to release their FHSS amounts, they need to apply to the ATO for a FHSS determination and a release.
About 18,500 new home buyers have released savings under the FHSSS since it began in July 2018.