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Are you a 1st Homebuyer looking for a faster way to save for your first home? Thanks to new laws that took effect 1st July 2018, your Super Fund could well be the investment partner that helps make your Aussie homeowner dream a reality sooner. Let’s take a look at how the First Home Super Saver Scheme (FHSS) works and the pros and cons…

How it works.

You can enjoy the tax incentives and some of the earnings benefits of superannuation by taking part in the First Home Super Saver Scheme (FHSS) which enables first-home buyers to save for a deposit inside their superannuation account.

Throughout the period of saving for your first home, you can make voluntary concessional contributions (for example by salary sacrificing) or non-concessional contributions (voluntary after-tax contributions) of $15,000 a year within existing caps, up to a total of $30,000.

Note: mandated employer contributions cannot be withdrawn under this scheme, it is only additional voluntary contributions made from 1 July 2017 that can be withdrawn.

When you have the green light on your loan and it’s time to go house shopping, you can then withdraw the contributions that you have made along with any deemed earnings (90-day Bank Accepted Bill rate with an uplift factor of 3%), to help fund a deposit on your first home. In order to withdraw the money from your Super, you must apply to the Commissioner of Taxation for a ‘first home super saver determination’ from which the Commissioner will then determine the maximum amount that can be released. The amount released from your super is then taxed at your marginal tax rate less a 30% offset (non-concessional contributions are not taxed).




Who Can Use the FHSS Scheme?

If the following apply to you, you’re in luck! You must;

If you are considering buying your first home, one of our expert mortgage brokers can help you navigate the process. You can book a free consult by calling (08) 9367 4222, email us ([email protected]) or fill in the contact form on this page.

Here is a great ATO resource to further your research:  Please note:  This is general advice only.  Your personal circumstances have not been taken into account and the information in this newsletter should not be used to make a decision regarding a financial commitment.  If you are considering investing in the FHSS Scheme, you should speak with a financial planner.