The Government introduced the First Home Super Saver Scheme to assist the first home buyers to save for a deposit in Super.
The scheme lets the first home buyer make voluntary contributions into their Super, which then can be withdraw to buy a house. This initiative will assist the Members to save for a home deposit in a tax efficient manner.
Under this scheme the Members can make voluntary contributions of up to $15,000 per year and $50,000 ($30,000 prior to 1 July 22) in total to their superannuation account to purchase a first home.
These voluntary contributions are in addition to your compulsory super contributions and can consist of the following :
When a Member is ready to buy a property, they can apply for an FHSS determination from the ATO using their myGov account. The determination will explain know how much is eligible to withdraw and the tax applicable.
Once the determination is received, the Member can apply to the ATO to release the savings. This is known as a ‘request for release’. The ATO will then instruct the SMSF to release the eligible amount. Please note that the super fund releases this money to the ATO and not directly to the Member. The ATO then deducts the applicable tax and sends the remaining funds to the Member. The tax payable on this assessable amount will receive a 30% tax offset.
For more information, please refer to an example here.
The Members can only use the FHSS scheme once. Please see the following eligibility criteria:
The contributions you make for the first home saver super scheme will be allocated to a separate account which is separate from the guaranteed employer contributions. Our accounting system can accommodate this new change and a separate single line item will be displayed in the SMSF Financial Statements showing the first home super saver contributions.
For more information, please see the ATO link here.