What is the FHSSS?
Saving for a deposit to buy your first home can be challenging. To help you to save, you can add in extra money (additional contributions) into your super account. Each year you can add up to $15,000 of eligible contributions (your compulsory employer contributions don’t count).
A $30,000 limit applies to the total contributions that can be eligible for withdrawal across all years. You can apply to the ATO to withdraw the money you contribute and use this towards your house deposit.
If your’re a couple, you can withdraw a combined total of $60,000 ($30,000 from each account). Eligibility criteria and conditions apply, read on to find out more.
- Who is eligible for the scheme?
To be eligible, you must:
- be at least 18 when you request a release of eligible contributions,
- have never owned property in Australia (including investment properties, commercial properties, a lease of land or a company title interest in land),
- not be purchasing vacant land, a houseboat, a motor home, or any property not capable of being occupied as a residence; and
- not have previously requested release of money under the FHSSS.
- How much can I contribute?
As an individual you can contribute up to $15,000 p.a. under the scheme and no more than $30,000 in total. The overall annual contributions cap limits apply and this may limit how much you can contribute.
- What contributions are eligible for FHSSS?
FHSSS-eligible contributions include:
- Before-tax contributions, such as:
- salary-sacrifice contributions, or
- personal contributions for which a tax deduction is claimed
- Voluntary after-tax contributions
Contributions that are not FHSSS-eligible include:
- SG contributions
- Employer contributions made under an award or enterprise agreement
- Government contributions (e.g. co-contributions)
- Contributions paid into your account by a spouse, parent, etc
- Contributions made in respect of a defined benefit interest
- What if you change your mind about the FHSSS?
If you don't use an FHSSS released amount for a first home deposit within 12 months (or up to 24 months if an extension was approved), you'll have two choices:
- Re-contribute the amount into super, or
- Keep the amount
If re-contributing, this must be for the full FHSSS amount you received. Note that the $100,000 annual after-tax (non-concessional) contribution cap will apply, and you won't be able to claim a tax deduction.
If keeping the amount, the ATO will apply a flat tax of 20% on any assessable portion (i.e. salary sacrifice contributions).
- Where can i find more information about the FHSSS?
To find out more about FHSSS eligibility, visit the ATO website
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