First Home Super Saver (FHSS) Scheme

With continued discussion in the media, and by political representatives about housing affordability in Australia, as we head towards the end of the Financial Year, it is a timely to remind people of the FHSS Scheme that was handed down in the 2017-2018 Budget last year to assist entry level buyers saving for a property.

What is the FHSS?

FHSS was introduced in last year’s Federal Budget as one measure to address housing affordability; it allows first home buyers to access their superannuation in order to buy their first property.  Acknowledging one of the biggest hurdles is saving for a deposit, whilst paying rent, the scheme allows you to save faster by benefitting from the concessional tax treatment within your super fund.

How does it work?

First home buyers can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into their superfund, to assist them as a form of savings to buy their first property.  From July 1, 2018 you can apply to release your contributions.

Who is eligible?

Whilst super contributions can be made at any age, it is not possible to access funds under the FSS scheme until 18.

Other criteria include:

  • Must never have previously owned a property in Australia;
  • Have not previously released FHSS funds;
  • Must live in the property for at least six of the first 12 months after settlement;

It is not eligible for use to purchase a motor home, houseboat, or vacant land.

 How much can you access?

A maximum of $15,000 from any one financial year, with a maximum of $30,000 in total.

Once released you have up to 12 months to sign a contract.