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Impact on First Home Super Saver scheme for Temporary Residency Visa holders

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Newbie

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Hi, 

 

I and my wife both are holding Temporary Residency Visa (Subclass 489) and just want to know,

 

01. Whether we are eligible to make voluntary contributions while holding the temporary residency visa status? 

 

02. Can we apply for release before we get the PR if make a contribution or do we have to wait till we get the PR not to have any tax disadvantages?

 

Cheers, 

 

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ATO Certified

Community Support

Replies 1

Hi @VJ88,

 

Welcome to the Community.

 

Generally speaking, your residency status doesn’t affect your ability to make voluntary contributions to your super. 

 

If you’re looking at making voluntary contributions towards the First home super saver (FHSS) scheme, you may want to check with your super fund that they’ll accept your contributions and let you withdraw them under the FHSS scheme.

 

When it comes to being eligible for the FHSS scheme, you need to meet all the eligibility criteria. Your residency status doesn’t affect your eligibility to use the FHSS scheme.

 

However if you’re a non-resident for tax purposes, you’ll pay tax on your assessable FHSS released amounts at the non-resident tax rate.  You’ll also need to check if there are any limitations to you buying residential property in Australia.

 

We've also included a list of things to consider when thinking about the FHSS scheme on FHSS Scheme contributions, tax and timeframes.

 

Thanks, NicM.

2 REPLIES 2
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Best answer

ATO Certified

Community Support

Replies 1

Hi @VJ88,

 

Welcome to the Community.

 

Generally speaking, your residency status doesn’t affect your ability to make voluntary contributions to your super. 

 

If you’re looking at making voluntary contributions towards the First home super saver (FHSS) scheme, you may want to check with your super fund that they’ll accept your contributions and let you withdraw them under the FHSS scheme.

 

When it comes to being eligible for the FHSS scheme, you need to meet all the eligibility criteria. Your residency status doesn’t affect your eligibility to use the FHSS scheme.

 

However if you’re a non-resident for tax purposes, you’ll pay tax on your assessable FHSS released amounts at the non-resident tax rate.  You’ll also need to check if there are any limitations to you buying residential property in Australia.

 

We've also included a list of things to consider when thinking about the FHSS scheme on FHSS Scheme contributions, tax and timeframes.

 

Thanks, NicM.

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Newbie

Replies 0

Thanks very much NicM for your detailed response.

 

Yes, I'm aware of the limitations of buying a property by a non-residence visa holder in Aus. And yes there are some tax implications for non -residents. But my plan is to sign a contract after I'm granted with the PR. so that won't be an issue. Just wanted to make sure the voluntary contributions I'm making now as a non-resident won't be a waste. 

 

Cheers,