The first home super saver scheme , commonly abbreviated as FHSS allows eligible first time home buyers to voluntarily contribute to superannuation and withdraw an amount (plus earnings and less tax) to buy a first home.
Eligibility for the FHSS Scheme :
- Individual at least 18 years old
- Have never owned property or vacant land in Australia, including investment properties
- Not previously requested for super to be released under the FHSS Scheme
- Live in or intend to live in the premises to be bought as soon as practicable
- Intend to live in the property for at least six of the first 12 months owned
Eligible Contributions :
- Salary sacrifice arrangement with employer
- Voluntary personal super contributions
Maximum release amounts :
The FHSS maximum release is $15,000 limit from any one year and $30,000 total limit to the total contributions across all years. All associated earnings is also allowed to be released and is excluded in above limits.
Amounts allowed to be released subject to cap above:
- 100% of eligible non-concessional contributions
- 85% of eligible concessional contributions
- Associated earnings calculated on these contributions using a deemed rate of return – this is based on the 90-day Bank Bill rate plus three percentage points (shortfall interest charge rate)
Process to Apply for FHSS release :
- Request an FHSS determination from ATO before signing a contract for first home or applying for the release of FHSS amounts. Apply online using myGov account linked to ATO online services
- Sign a contract to purchase or construct your home either:
- Up to 14 days before you make a valid request to release your FHSS amounts.
- With in 12 months from the date of valid release request to do one of the following:
- Sign a contract to purchase or construct your home and notify ATO within 28 days of signing
- Recontribute the assessable FHSS amount (less tax withheld) into your super and notify ATO within 12 months of the valid release request date.