ATO Community

Re: Questions on FHSS - First home super scheme

Ask a question
Highlighted

Initiate

Replies 4

@JodieH Thanks for your help and waiting for your response. This really helps me to plan. 

Community Support

Replies 3

Hi @rajvenka,

 

Thanks for your patience whilst we received specialist information regarding your question.

 

For your partner to be eligible to apply for release under the FHSS Scheme, she must at the time of applying:

  • never have held a stipulated property interest in Australia (which includes a freehold interest in real property in Australia);
  • be over the age of 18; and
  • have not requested a release authority under the FHSS Scheme previously.

In the scenario you've described, we understand that you alone will own the real property, in this case the vacant land, and your partner will not hold a freehold interest in the property at the time of the original acquisition. It then appears that you are anticipating your partner applying for release under the FHSS Scheme and then your partner becoming a joint owner through you selling/gifting a share of the real property that you will then begin constructing a home on.

 

Eligibility for the FHSS Scheme is determined on an individual basis, therefore if you partner meets the eligibility criteria at the time she applies then you owning real property will not stop her from being eligible. Also once an amount has been released under the scheme a person has up to 12 months (or an extended time up to 24 months) to sign a contract to purchase or construct a home. Noting that the contract that is entered into has to be for a residential premise and not for vacant land. For example an individual who requested a FHSS determination before entering into a contact to purchase vacant land would be eligible, as long as the other criteria were met, to ask for a FHSS determination. They would then have 12 months (or extended period) to enter into a contract to construct a home on the land or alternatively to purchase another property that had a residential premises on it, in order to avoid having to recontribute an amount into super or pay the FHSS tax.

 

As such, your partner should consider how the end to end process applies to her, and you both should also consider any other associated financial implications, such as Capital Gains Tax and State government stamp duties. These considerations should be sought before she starts making superannuation contributions, so that you can determine if the FHSS Scheme is appropriate for both of your financial circumstances.

 

If you have further questions, you can phone us on 13 10 20 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

 

Initiate

Replies 2

@JodieH Thank you very much and it really helps. 

Initiate

Replies 1

@JodieH One last standard question. When i start contributing to Salary Scarifie Super for FHSSS, should i ask my employer to put money into FHSSS specfic account or any contribution during the FY? Or  first 15000$ addtional contribution (not standard to 9.5%) will be count towards FHSSS if meets all the preconditions and then eligible to withdraw the amount.

 

Community Support

Replies 0

Hi @rajvenka,

 

Thanks again for your question!

 

Contributions made under the FHSS scheme are not a new type of contribution. They are voluntary contributions made to your superannuation fund(s). You don't need to notify your employer or fund that these contributions are being made for the purpose of this scheme, and don't need to establish a separate special account with your fund

 

Thanks, JodieH.

Top Solution Authors