James has been making voluntary contributions to his Super Fund to save for his first home. James can apply for the release of his voluntary contributions, together with associated earnings to help with the purchase as:
- He is a first home buyer - has never owned property in Australia including an investment property, vacant land, commercial property, a lease of land in Australia of a company title interest in land
- He is over 18
- He intends to live in the premises for at least six months within the first 12 months that he owns the property.
Since 1 July 2017 you have been able to make voluntary concessional (before tax) and non-concessional (after tax) contributions to your Super Fund to save for your first home. Super concessional tax benefits also apply.
Important things to note:
- You must wait for the FHSS amount to be released prior to signing the contract to purchase or construct your home.
- You have 12 months from the date of the first release of FHSS funds to sign a
- contract to purchase or construct your home and notify the ATO within 28 days of signing the contract otherwise you can:
- Request an extension of up to a further 12 months
- Re-contribute the assessable FHSS amount (less tax withheld) into your Super Fund and notify the ATO by the end of the 12 months (or extended) period.
- Keep the released amount and be subject to a FHSS Tax.
- Check that your Super Fund will release amounts under the scheme and whether there are any fees, charges or insurance implications that may apply.
- Tax will be withheld (your expected marginal tax rate, including Medicare Levy, less a 30% offset).
- You must declare the released amounts in your tax return for the year in which you requested the release.
- You can only apply for release once.
- A couple purchasing a home can both take advantage of the FHSS Scheme.
- First Home Owners may also be eligible for other concessions offered by the State Government.
For more information go to ato.gov.au/fhss
This article is general information only and should not be relied on without obtaining further specific information