Here’s a summary of how it works:
- The FHSS scheme enables you to make extra contributions (on top of what your employer pays) into your super.
- You can use these extra contributions, plus the associated earnings, to help you purchase your first home.
- This means you may save on tax.
- When you’re ready to buy, apply to the ATO to withdraw your extra contributions.
How much can I save?
You can contribute up to $15,000 per financial year, and $30,000 in total, towards the FHSS scheme. Any extra contributions you make to your super above this amount stay in your super until you retire or meet another condition of release.
You can use the FHSS scheme if you:
- are over 18.
- haven’t previously owned property in Australia (if you’ve experienced financial hardship, talk to the ATO as you may still be eligible).
- have not already requested release of your super savings under the FHSS scheme.
What if I donʼt end up buying a home?
- You can deposit the assessable released amount back into your super.
- Or keep the money and pay the First Home Super Saver Tax which is calculated at 20% of the assessable released amount.