The First Home Super Saver

The First Home Super Saver (FHSS) scheme was introduced by the Australian Government in the Federal Budget 2017–18 to reduce pressure on housing affordability.
 
The FHSS scheme allows you to save money for your first home inside your superannuation fund. This will help first home buyers save faster with the concessional tax treatment within super.
 
About the FHSS scheme
 
From 1 July 2017 you can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into your super fund to save for your first home.
 
From 1 July 2018 you can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home. You must meet the eligibility requirements to apply for the release of these amounts.
 
This scheme is suitable for first home buyers if:
•you either live or intend to live in the premises you are buying as soon as practicable •you 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.
 
You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to a total of $30,000 contributions across all years. You will also receive an amount of earnings that relate to those contributions.
 
Find out about:
•Who is eligible
•How you can save in super
•Applying to release your savings
•After your savings have been released
 
Who is eligible
 
You can start making super contributions from any age, but you can't request a release of amounts under the First Home Super Saver (FHSS) scheme until you are 18 years old, and you:
•have never owned property in Australia – this includes an investment property, vacant land, commercial property, a lease of land in Australia, or a company title interest in land in Australia (unless the Commissioner of Taxation determines that you have suffered a financial hardship) •have not previously requested the Commissioner to issue a FHSS release authority in relation to the scheme.
 
Eligibility is assessed on an individual basis. This means that couples, siblings or friends can each access their own eligible FHSS contributions to purchase the same property. If any of you have previously owned a home, it will not stop anyone else who is eligible from applying.
 
Financial hardship provision
 
You may still be eligible even if you have previously owned property in Australia, if the Commissioner of Taxation determines that you have suffered a financial hardship that resulted in a loss of ownership of a property. Regulations are expected to be available just prior to 1 July 2018 specifying the circumstances for this provision.
 
If you want to be considered under the financial hardship provision you can apply from 1 July 2018. You should apply before you start saving, so that we can determine if the hardship provision applies to you.
 
If the Commissioner makes a determination that you have suffered a financial hardship, you must also meet the following criteria at the time you request a FHSS determination:
•you must not have acquired a subsequent interest in real property in Australia since you lost the property as a result of financial hardship •you must be over 18 years of age •you must not have previously requested a release of FHSS amounts.
 
Your application under the financial hardship provision must be supported by evidence that demonstrates the link between the loss of the property and the hardship event.
 
Find out about:
•How you can save in super
•Applying to release your savings
•After your savings have been released
 
How you can save in super
 
You can start saving by entering into a salary sacrifice arrangement with your employer to make voluntary contributions or by making voluntary personal super contributions. You can contribute into any super fund, although contributions made to a defined benefit interest or a constitutionally protected fund will not be eligible to be released under the FHSS scheme. It is also possible to contribute into more than one fund.
 
Note: Some employers may not offer salary sacrifice arrangements to their employees.
 
Before you start saving:
•Check that your nominated super fund/s will release the money.
•Ask your fund about any fees, charges and insurance implications that may apply.
•Be aware that if you receive FHSS amounts, it will affect your tax for the year in which you make the request to release. You will receive a payment summary, and you will need to include both the assessable and tax-withheld amounts in your tax return.
 
If you want to be considered under the financial hardship provision then you should ask us to determine if these provisions apply to you before you start saving.
 
Contributions you can make
 
You can make the following existing types of contributions towards the FHSS scheme:
•Voluntary concessional contributions – including salary sacrifice amounts or contributions for which a tax deduction has been claimed. These are taxed at 15%.
•Voluntary non-concessional contributions that you have made – these are made after tax or where a tax deduction has not been claimed.
 
You can contribute up to your existing superannuation contribution caps. Having amounts released under the FHSS scheme does not affect the calculation of your concessional or non-concessional contributions for contributions cap purposes. Your contributions still count towards your contribution caps for the year they were originally made.