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FHSS "as soon as practicable after purchase"

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I understand that for FHSS to be withdrawn appropriately I need to:

"

  • occupying or intending to occupy the property as soon as practicable after purchase
  • occupying or intending to occupy the property for at least six of the first 12 months from when it is practicable to occupy it.

"

but I'm wondering how this works if I buy a property that has an existing lease that ends later than 6 months. So for example if it's March and I buy a property that has a tenant on a pre-existing lease until December. If I plan to move in as soon as they vacate (i.e. January next year) does this still fall within the requirements?

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Hi @vefzdybg

 

Thanks for your question.

 

If you purchase a property that is currently tenanted, unless your tenant is happy to vacate early, you won't be able to move in until at least December this year. In turn, it wouldn't be practicable to move in sooner than that.

 

For more information about your requirements after your savings have been released, check out our website.

 

If you were to move in to the property in January next year, it would be shortly after your tenant has vacated. This would meet the first requirement.

 

Assuming that you then live in it for at least the next six months, the second requirement would also be met.

 

It is important to note that the clock doesn't start ticking from the contract date or the settlement date. This requirement is measured from when the property is able to be occupied by the owner.

 

This ensures that purchasers aren't disadvantaged by situations like this one. It also ensures that if you are signing a contract to construct a home, you don't have to rush the construction so that you can move in by a certain date.

 

Hope this helps.

 

Thanks,

 

ChrisR

1 REPLY 1
Highlighted

Most helpful response

ATO Certified Response

Community Support

Replies 0

Hi @vefzdybg

 

Thanks for your question.

 

If you purchase a property that is currently tenanted, unless your tenant is happy to vacate early, you won't be able to move in until at least December this year. In turn, it wouldn't be practicable to move in sooner than that.

 

For more information about your requirements after your savings have been released, check out our website.

 

If you were to move in to the property in January next year, it would be shortly after your tenant has vacated. This would meet the first requirement.

 

Assuming that you then live in it for at least the next six months, the second requirement would also be met.

 

It is important to note that the clock doesn't start ticking from the contract date or the settlement date. This requirement is measured from when the property is able to be occupied by the owner.

 

This ensures that purchasers aren't disadvantaged by situations like this one. It also ensures that if you are signing a contract to construct a home, you don't have to rush the construction so that you can move in by a certain date.

 

Hope this helps.

 

Thanks,

 

ChrisR