FHSS and tenants in common

 Author: BrookeATO(Community Support)Community Support

14 Mar 2025

Hi @Zimmy

We've heard back from our FHSS team who provided the below information:

There are two important concepts that need to be explored in order to answer your question:

Eligibility for the scheme:

You must request a FHSS determination before ownership of any real property transfers to you (generally following settlement of a property contract, including a contract to purchase vacant land). Once ownership of real property has transferred to you (including settlement of land purchase), you're no longer eligible to request a FHSS determination. You must have received a determination before you've settled for your first property or land.

Check out our webpage on the first home super saver scheme for more info.

FHSS post release obligations:

The FHSS scheme requires individuals that use the scheme to notify the ATO within a specific period of time once they've signed a contract to purchase or construct their home (land purchase or tiny home do not satisfy this requirement). If you sign a contract to purchase or construct your home, you must notify us within 90 days (or other period we allow) of signing the contract.

The signing of a contract for the land or the tiny home does not satisfy this contract signing requirement for the purpose of the FHSS scheme notification.

In your example:

• If the land you're purchasing doesn't have a house on it (you're only purchasing the land), placing the tiny home in the land and living in it for at least 6 of the first 12 months doesn't satisfy the FHSS requirements. If you're planning to build a home in this land, you must sign a contract to build the home within 12 months of the date you requested the release of your FHSS money (or other period we allow) and notify the ATO within 90 days (or other period we allow) of signing that contract. Or, you can sign a contract to purchase a home and notify the ATO of this contract if you decide not to build in this land. Remember, either way, you then will need to occupy the property as a home as soon as practicable after purchase and do so for at least 6 of the first 12 months.
• If the land you're purchasing does have a house on it, this means you're not just purchasing the land, you're also purchasing the home that is on it and that will be considered your first home for FHSS purposes. This means that placing a tiny home in the land and living in there for at least 6 of the first 12 months doesn't satisfy the FHSS requirements. You'll need to notify the ATO of the signing of the contract for the purchase of the home that is on the land and then you must genuinely intend to occupy the property as a home as soon as practicable after purchase and do so for at least 6 of the first 12 months.