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First Home Super Saver

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I have requested and received a determination of my FHSS. I am looking to potentially purchase a property at auction in the next month. As I have not met my $30k quota yet, I won't want to request a release of my FHSS until I find a property I want to buy, or until I meet my $30k quota. Most of the properties I am looking at are sale by auction, so will not know whether I will be successful or not until on the day of auction. My question is, should I request a release of my FHSS, as I will need to pay a deposit at auction, if my parents loan me the money to pay the deposit can I use this FHSS to repay them for my first home deposit? It will be for my first home, I will sign a contract and be able to provide this to the ATO. It's just if I don't get the funds in time to pay the 10% up front at auction, will I be allowed to use the money to pay back my parents loan for the house deposit?

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Hi @LSM2019

 

Welcome to our Community.

 

The first home super saver (FHSS) scheme allows you to save money for your first home inside your superannuation fund. As a first home buyer, you are able to save faster by taking advantage of super's concessional tax treatment as well as the higher earnings.

 

For more information, you can refer to the first home super saver scheme page on our website.

 

To take advantage of the scheme, there are a number of things that you are required to do including making at least one voluntary contribution to your super fund as well as submitting a FHSS determination request. You have indicated that you have already done both which is great.

 

If you would like to include more voluntary contributions in your FHSS release request, you will need to submit a new FHSS determination request. You can do that as long as you haven't applied for the release of your super or signed a home purchase or construction contract.

 

If you do find a property that you would like to purchase and have made some additional voluntary contributions since you submitted your previous FHSS determination, we recommend that you submit a new determination request before signing the contract.

 

It is up to you as to whether you wait until you have received your FHSS released amount before purchasing a property via auction. Recent changes to the scheme allow you to sign the home purchase or construction contract up to 14 days before you make a valid request to release your FHSS amounts.

 

For more information about the important changes to the first home super saver scheme, refer to our website.

 

Once your savings have been released, you have up to 12 months (or other period allowed) from the date you requested the release of FHSS amounts to sign a contract to purchase or construct a home. If you don't sign a contract within 12 months, you have a few options.

 

For more information about your options and requirements after your savings have been released, refer to our website.

 

Assuming that you do sign a contract, you must notify us within 28 days of signing the contract. While you are obliged to tell us that you have signed a contract, you're not obliged to tell us how you spent the FHSS released amount.

 

If you borrow money to help you with the deposit for your new home, you could use the FHSS released amount to repay that borrowing. The borrowing doesn't have to be from a financial institution. In other words, you could use the money to repay your parents.

 

Hope this helps.

 

Thanks,

 

ChrisR

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @LSM2019

 

Welcome to our Community.

 

The first home super saver (FHSS) scheme allows you to save money for your first home inside your superannuation fund. As a first home buyer, you are able to save faster by taking advantage of super's concessional tax treatment as well as the higher earnings.

 

For more information, you can refer to the first home super saver scheme page on our website.

 

To take advantage of the scheme, there are a number of things that you are required to do including making at least one voluntary contribution to your super fund as well as submitting a FHSS determination request. You have indicated that you have already done both which is great.

 

If you would like to include more voluntary contributions in your FHSS release request, you will need to submit a new FHSS determination request. You can do that as long as you haven't applied for the release of your super or signed a home purchase or construction contract.

 

If you do find a property that you would like to purchase and have made some additional voluntary contributions since you submitted your previous FHSS determination, we recommend that you submit a new determination request before signing the contract.

 

It is up to you as to whether you wait until you have received your FHSS released amount before purchasing a property via auction. Recent changes to the scheme allow you to sign the home purchase or construction contract up to 14 days before you make a valid request to release your FHSS amounts.

 

For more information about the important changes to the first home super saver scheme, refer to our website.

 

Once your savings have been released, you have up to 12 months (or other period allowed) from the date you requested the release of FHSS amounts to sign a contract to purchase or construct a home. If you don't sign a contract within 12 months, you have a few options.

 

For more information about your options and requirements after your savings have been released, refer to our website.

 

Assuming that you do sign a contract, you must notify us within 28 days of signing the contract. While you are obliged to tell us that you have signed a contract, you're not obliged to tell us how you spent the FHSS released amount.

 

If you borrow money to help you with the deposit for your new home, you could use the FHSS released amount to repay that borrowing. The borrowing doesn't have to be from a financial institution. In other words, you could use the money to repay your parents.

 

Hope this helps.

 

Thanks,

 

ChrisR