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First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSS) allows individuals who make voluntary contributions into the superannuation system on or after 1 July 2017, to withdraw those contributions (up to certain limits) and an amount of associated earnings for the purpose of purchasing their first home. Eligible individuals can apply to access the FHSS scheme from 1 July 2018. A withdrawal under the FHSS scheme is made by application to the Australian Taxation Office (ATO), and the amount withdrawn under the FHSS scheme will attract concessional tax treatment.

ELIGIBILITY

To be eligible for the FHSS scheme, the individual must:

  • Never have held a stipulated property interest in Australia
  • Be 18 years or older
  • Not have requested a release authority under the FHSS scheme previously

ELIGIBLE CONTRIBUTIONS

An eligible contribution is a contribution made in respect of the individual in a financial year and must be a concessional or non-concessional contribution that is either:

  • An employer contribution that is not a mandated employer contribution
  • A member contribution that is made by the individual

WITHDRAWALS UNDER THE FHSS SCHEME

Where the individual is eligible to withdraw an amount from their superannuation account under the FHSS scheme, the individual can apply to the ATO in the approved form for the ATO to make a FHSS determination. The determination sets out the maximum amount that can be released under the FHSS scheme.

When the ATO issues the FHSS determination, the individual can request the ATO to issue a release authority to a superannuation provider for the release of an amount up to the maximum amount set out in the determination from superannuation interests held by the superannuation provider. An amount is included in their assessable income for the year in which the individual request the ATO to issue a release authority.

OBLIGATIONS FOLLOWING THE RELEASE OF AN AMOUNT

The FHSS scheme requires the released amount to be used to purchase the individual’s first home. The following conditions must be met after the release of funds under the scheme:

  • The individual enters into a contract to purchase or construct a CGT asset that is a residential premises within 12 months after the release
  • The price for the purchase of premises is at least equal to the sum of the FHSS released amounts
  • The individual has occupied, or intends to occupy the premises as soon as practicable
  • The individual intends to occupy the premises for at least 6 months within the first 12 months after it is practicable to occupy the premises
  • The individual notifies the ATO in the approved form of the matters outlined above within 28 days

Published on October 10, 2018 by Progue

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