Buy Your First Home with the First Home Super Saver Scheme

Gino FarinaFirst Home Buyers

The First Home Super Saver Scheme

First homebuyers across Australia have a new way to get into the property market with the First Home Super Saver (FHSS) Scheme. Introduced on July 1 2017, the First Home Super Saver (FHSS) Scheme lets homebuyers access money from their superannuation fund to help them secure their first home.

How it works is that you can make voluntary concessional (pre-tax) and non-concessional (post tax) contributions into your super fund to assist savings for your first home, and from July 1 this year, apply to release those voluntary contributions (including associated earnings) to purchase your first home.

This is great news for many who thought they might never be able to save a big enough deposit to buy a home. The FHSS scheme helps fast-track your savings by letting you benefit from the concessional tax treatment within your super fund.

Who is Eligible?

To be eligible for the scheme, you must:
● Be over the age of 18.
● Have never previously owned any property in Australia (unless the Commissioner of Taxation has determined you have suffered a financial hardship).
● Have not previously released FHSS funds.
● Intend to live in the property for at least six months of the first 12 months you own it, after it is practical to move in.
● Not use FHSS amounts to purchase non-residential property, a houseboat, motor home or vacant land.

Releasing your funds

When you are ready, you can apply to release your eligible FHSS contributions, up to the following amounts:

● A maximum of $15,000 from any one financial year.
● A maximum of $30,000 in total across all years.

Once your savings have been released, you have up to 12 months to sign a contract to buy or construct a home.

Additional information can be found on the Australian Government website, via the link Super Saver Scheme