USE SUPER FUND MONEY TO BUY YOUR FIRST HOME – FACTS
The First Home Super Saver (FHSS) scheme was introduced by the Australian Government in the Federal Budget 2017–18 to reduce pressure on housing affordability.
From 1 July 2017 you can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into your super fund to save for your first home.
From 1 July 2018 you can then apply to release your voluntary contributions, along with associated earnings, to help you purchase your first home.
You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme, up to a total of $30,000 contributions across all years. You will also receive an amount of earnings that relate to those contributions.
Important Notes:
1. To be eligible for this scheme, you shouldn’t have owned property in Australia before– this includes an investment property, vacant land, commercial property, a lease of land in Australia, or a company title interest in land in Australia
2. Superannuation Guarantee ( SG) amounts paid by your employer cannot be withdrawn for this purpose. Instead you need to make extra payment by way of salary sacrifice or personal contributions to Super Fund for you to withdraw in future years
3. When you withdraw , tax will be withheld on the payout at your marginal rate less 30%. In short , the maximum tax savings you can achieve is 15%
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