First Home Si[er Saver Scheme (FHSS)

Unleash the First Home Super Saver Scheme (FHSS)

Unleash the First Home Super Saver Scheme (FHSS)

The First Home Super Saver (FHSS) Scheme was proposed in 2017 Federal Budget for the first time and was passed in both Parliament house while receiving Royal Assent in December 2017. The Scheme has aimed for reducing the pressure on housing affordability while enabling the first-time home purchasers to make voluntary contributions into their super fund. This will also enable them to withdraw the associated contributions and earnings for purchasing their first home.

On May 9, 2017, the government has announced that effective from July 1, 2018, the members would be able to apply for withdrawal of voluntary contributions from superfund after July 1, 2017, for their first home.

The contributions that would be considered under voluntary contributions include:

  • Non-concessional personal contributions
  • Concessional personal contributions
  • Salary sacrifice contributions.
  • Up to voluntary contributions of AUD15,000 in a single financial year can be Counted towards FHSS and can be released.

The maximum amount that can be released is of AUD$ 30,000 which includes personal contributions and associated earnings.

Note: Concessional contributions and earnings so withdrawn would be taxed at the marginal rates Less a 30% tax offset.

FHSS Contribution

These type of contribution is not a recent happening. They are inclusive of the voluntary contributions to your super fund. The need for notifying for the fund along with the purpose for the same is not mandatory.

What are the FHSS Legislation and Supporting Materials?

Important Things to Note while using FHSS Scheme:

The applicant must:

  • Apply for and receive a valid FHSS nomination from ATO before signing the contract for the first home or release of the FHSS
  • Ensure that the home is in Australia itself.
  • Sign a contract for the purchase or house construction from the date of a valid release request of FHSS amounts. Before this, the applicant must have an FHSS determination before signing and making a valid release request within 14 days of contract.

Note: The applicant is allowed to apply for FHSS amount release only once. Also, after the submission of the release request, the procedure would take between 15 and 25 business days to release funds.

The applicant has only 12 months from the date of making a valid request for releasing of FHSS amounts. Until then, the applicant needs to:

  • Either Sign a contract for the purchase or home construct – notify ATO within 28 days of contract signing. OR
  • Recontribute the assessable FHSS amount (less tax withheld) into the super fund – notify ATO within 12 months of the release request date been contributed.


Who is Eligible?

The applicants must be:

  • The applicant must be 18 years old or older to request a determination or a release of amounts
  • First-time home-owners in Australia including investment property, unoccupied land, commercial property, land on lease in Australia, or a company title interest in land in Australia.
  • Requesting the Commissioner for issuing FHSS release authority for the first time.

Summing Up, there are various benefits of FHSS Scheme for the first-time homebuyers in Australia. Additionally, the benefits extend up to the SMSF services and their members as well.

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