What is the First Home Super Saver Scheme (FHSSS)?
The First Home Super Saver Scheme (FHSSS) is a government initiative designed to help first-time homebuyers save for a home using their superannuation fund. It allows you to withdraw eligible voluntary super contributions (and their associated earnings) to assist with purchasing or building your first home. This scheme provides a tax-effective way to save by contributing to your super.
Eligibility and Contribution Limits for FHSSS
To participate in the FHSSS, you can withdraw up to $50,000 of eligible voluntary contributions, made since 1 July 2017. Each year, you can contribute up to $15,000, with a lifetime cap of $50,000. Contributions can be made via salary sacrifice or personal deductible contributions, offering potential tax benefits for those saving for a home.
How to Access Your FHSSS Funds
To access your FHSSS savings, you must follow a set process. First, request a determination from the Australian Taxation Office (ATO) to find out your maximum eligible FHSSS release amount. Once approved, you can request the release of funds. After receiving the funds, you must notify the ATO once you’ve signed a contract to purchase or construct your home, typically within 12 months of requesting the release. You can request the release either before signing the contract or within 14 days of signing.
Key Changes to the FHSSS from 15 September 2024
From 15 September 2024, several key changes will make the FHSSS more flexible. These changes include:
- An expanded timeframe for requesting a release of funds.
- Broader eligibility criteria for determining who can request a determination.
- More flexibility in amending applications to meet changing circumstances.
Expanded Opportunities for Past Applicants
The upcoming changes also offer a unique opportunity for individuals who previously applied for the FHSSS between 1 July 2018 and 14 September 2024 and were unsuccessful. If you’re eligible, the ATO will contact you to confirm whether you want to reapply for a release, even if you now own a home.
The Benefits of Using FHSSS for Your First Home
The FHSSS can be an effective way for first home buyers to boost their savings, taking advantage of tax benefits while building a superannuation balance. With these new changes, the scheme is more accessible and flexible, offering greater support for individuals navigating the journey to homeownership.
For more information or personalised guidance, feel free to contact our team of experts at LZR.
