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First Home Super Saver Extension

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Newbie

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Hi,

 

I'd like some information about extending the timeframe to purchase a home under FHSS.

The fact sheet comments that if you do not sign a contract to purchase or construct a home within 12 months from the time the first amount is released to you, you can:

  • apply for an extension of time for a maximum of a further 12 months

 

Could you please provide some information if there is a process or form required to be completed to apply for this extension or how it is managed?

 

Kind regards,

Ben

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Best answer

Community Support

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Hi @benvdk, @Damien883 and @SebReiter,

 

Thanks for your patience while we checked this out with our technical experts.

 

They've advised we’ll send you a reminder before the 12 month period is up if we haven’t received a notification from you advising you’ve:

  • signed a contract to buy or build a property, or
  • recontributed your assessable FHSS released amount to your super

 

If we still haven’t received a notification from you once the 12 months has passed, we’ll automatically grant you an additional 12 months extension of time - you don't need to apply to us to request an extension of time to buy a home.

 

It’s worth keeping in mind that the maximum time frame you have to sign a contract to buy or build a property is 24 months (this includes the extension of time). If you haven’t signed a contract to buy or build a property or recontributed your assessable FHSS released amount back into your super, you’ll be liable to pay the FHSS tax.

 

It's also worth remembering that if you do sign a contract to buy or build your home, you need to notify us within 28 days of signing - you can do this using our online services via myGov.

 

Thanks, NicM.

6 REPLIES 6
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Community Support

Replies 4

Hi @benvdk

 

Thanks for your patience while we look into this further for you.

 

We’ve asked our technical experts to help answer your question.

 

Our offices will be closing from 6:00pm Friday 21 December until 8:00am Wednesday 2 January 2019, and we’ll get back to you as soon as possible.

 

Thanks, NicM.

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Newbie

Replies 3

I too would like to know about the up to 12 month extension.
What is the criteria the ATO use in approving extensions and what reasons are available to people to use?

In practical terms how likely is it for extension applications to be rejected?
Is it a situation where the ATO allow all valid extensions unless there is serious concerns etc?
Or is it difficult to prove an extension is required?

I'm only interested in using the scheme if extensions are granted liberally.
Thanks

Damien

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Newbie

Replies 2

Hi @NicATO 
@JamesF@SebReiter
@Anonymous

 

I and @benvdk have some queries above regarding the 'up to 12 month' extension for the First Home Super Saver Scheme- is anyone able to assist?

Thanks

Damien

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Devotee

Replies 1

Hi Damien

 

I can't imagine the ATO would reject a request for a 12 month extension. The aim of the policy is to help people to buy a first home, not to lock the money away in someone's super account. 'I haven't found a property I want to buy yet' is a reasonable reason to request a time extension.

 

Processing times for FHSS releases have improved since the policy went live in July last year. I'd suggest getting an FHSS determination once you start looking for a place to buy, but holding off on requesting the FHSS release until a purchase is more imminent. This delays starting the initial 12 month timer as long as possible.

 

As the policy has only been in place for 7 months so far it'll be a few months yet before someone may want to request a time extension. Details of the process will be available by the time they're needed.

 

Seb

 

I'm an ATO employee voluntarily providing my time here

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Newbie

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Thanks very much for the reply @SebReiter , that was my thinking too but you never know with these things- assumptions can be dangerous! Smiley Happy

 

You raise a good point that I hadn't considered where no-one is yet in a position to have needed longer than 12 months.

I guess I'll take the plunge and hope that:
A. I won't need an extension when I go to buy; or
B. If I do need an extension- common sense prevails and extensions are granted liberally for reasons such as- 'haven't found the right house yet'.

 

Thanks

Damien

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Best answer

Community Support

Replies 0

Hi @benvdk, @Damien883 and @SebReiter,

 

Thanks for your patience while we checked this out with our technical experts.

 

They've advised we’ll send you a reminder before the 12 month period is up if we haven’t received a notification from you advising you’ve:

  • signed a contract to buy or build a property, or
  • recontributed your assessable FHSS released amount to your super

 

If we still haven’t received a notification from you once the 12 months has passed, we’ll automatically grant you an additional 12 months extension of time - you don't need to apply to us to request an extension of time to buy a home.

 

It’s worth keeping in mind that the maximum time frame you have to sign a contract to buy or build a property is 24 months (this includes the extension of time). If you haven’t signed a contract to buy or build a property or recontributed your assessable FHSS released amount back into your super, you’ll be liable to pay the FHSS tax.

 

It's also worth remembering that if you do sign a contract to buy or build your home, you need to notify us within 28 days of signing - you can do this using our online services via myGov.

 

Thanks, NicM.