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Can I buy a block of land and a container home with the FHSS?

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I can't find any information specifically on this other than a previous post saying that tiny houses would be classed as residential property and therefore approved for the FHSS, provided you sign a building contract to have that tiny home built.

I'd like to ask if the same applies for container homes?

Also, the governemnt said that the total withdrawal limit would be increasing from $30k to $50k this financial year, but as yet can't find any updated information.  Is the maximum still $15k per year?

Thankyou


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ATO Certified Response

Devotee Super Specialist

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Hi @JarrodM,

 

As you are aware, if you purchase vacant land after requesting a FHSS determination you will need to enter into the contract to construct the premises within the period from 14 days before you make a valid request for release until 12 months after the day you make a valid request for release.

 

As far as the home being built goes, it needs to be a premises capable of being occupied as a residence and cannot be; a houseboat or motor home.

 

The term 'residential premises' is defined under section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 as meaning land or a building that is occupied as a residence or for residential accommodation or is intended to be occupied, and is capable of being occupied, as a residence or for residential accommodation (regardless of the term of the occupation or intended occupation).

 

You may wish to have a read over the Goods and Services Tax Ruling GSTR 2012/5 Goods and services tax: residential premises for the Commissioner's views as to when premises qualify as residential premises.

 

Among other things, the premises must be designed, built or modified so as to be suitable to be occupied, and capable of being occupied, as a residence or for residential accommodation. This is demonstrated through the physical characteristics of the premises and must provide shelter and basic living facilities.

 

The FHSS scheme currently still has a limit of $15,000 of eligible contributions per financial year that are counted towards release amount, and a total limit of $30,000 of eligible contributions across all years.

 

As part of the 2021–22 federal Budget, the Australian Government announced the proposed changes to improve the operation of the First Home Super Saver (FHSS) scheme and increase the maximum releasable amount up to $50,000 from 1 July 2022. However, these measures are not yet law.

 

Hope the information provided helps.

 

Thanks,

Mark

1 REPLY 1

Most helpful response

ATO Certified Response

Devotee Super Specialist

Replies 0

Hi @JarrodM,

 

As you are aware, if you purchase vacant land after requesting a FHSS determination you will need to enter into the contract to construct the premises within the period from 14 days before you make a valid request for release until 12 months after the day you make a valid request for release.

 

As far as the home being built goes, it needs to be a premises capable of being occupied as a residence and cannot be; a houseboat or motor home.

 

The term 'residential premises' is defined under section 195-1 of the A New Tax System (Goods and Services Tax) Act 1999 as meaning land or a building that is occupied as a residence or for residential accommodation or is intended to be occupied, and is capable of being occupied, as a residence or for residential accommodation (regardless of the term of the occupation or intended occupation).

 

You may wish to have a read over the Goods and Services Tax Ruling GSTR 2012/5 Goods and services tax: residential premises for the Commissioner's views as to when premises qualify as residential premises.

 

Among other things, the premises must be designed, built or modified so as to be suitable to be occupied, and capable of being occupied, as a residence or for residential accommodation. This is demonstrated through the physical characteristics of the premises and must provide shelter and basic living facilities.

 

The FHSS scheme currently still has a limit of $15,000 of eligible contributions per financial year that are counted towards release amount, and a total limit of $30,000 of eligible contributions across all years.

 

As part of the 2021–22 federal Budget, the Australian Government announced the proposed changes to improve the operation of the First Home Super Saver (FHSS) scheme and increase the maximum releasable amount up to $50,000 from 1 July 2022. However, these measures are not yet law.

 

Hope the information provided helps.

 

Thanks,

Mark