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The First Home Super Saver (FHSS) scheme explained
Could your superannuation be the key to your first home?
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Saving for a first home deposit has its hurdles, and strategies to help boost savings are in high demand.
The Australian Government’s updated First Home Super Saver (FHSS) scheme is a savvy solution that could help first homebuyers enter the property market sooner.
Here’s how the FHSS scheme works.
What is the FHSS?
The FHSS allows first homebuyers to make contributions to their superannuation fund, then withdraw those contributions for a deposit on a home.
Each financial year, participants can add up to $15,000 in eligible super contributions towards a total FHSS releasable amount of $50,000.
What type of property can I buy?
Under the scheme, your funds can be used to buy a new or existing home in Australia – including vacant land if you’re planning to build.
Keep in mind that you must occupy the premises you buy for at least six months in the year after the purchase or construction is complete.
Building up your deposit can be challenging, but there are other options.
Who is eligible for the scheme?
Participants must not have used the scheme before or owned property in Australia. This includes any investment property, commercial property, vacant land or lease of land.
While you must be 18 years of age or older to request a release of funds, you can begin making eligible contributions before you turn 18.
If you meet all eligibility criteria, you can participate in the scheme – even if you plan to buy a home with a partner who does not meet the criteria.
How do I apply?
Applications can be made to the Australian Taxation Office (ATO) using myGov. But before you apply, make sure the FHSS is the right option for your homebuying journey.
A Liberty Adviser can help you better understand your deposit requirements as well as work out how much you may be able to borrow.
So for help getting into your first home sooner, speak with your local Liberty Adviser today.
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