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Questions on FHSS - First home super scheme

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Newbie

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I have few questions on FHSS - First home super scheme

 

  1. Both my wife and I have never bought a property before and are first home buyers

How can we contribute $15,000 concession super amount each to our super fund accounts before 30/6/2018 ? Is there any special account we need to open ?

  1. Next Financial year, from 1/7/2018. If we both contribute $15,000 a big lump sum at the beginning of the year, then buy our first home a few months later (still in FY 2019), can we still take out $30,000 each ?

 

I look forward to hearing from you

 

Thank you,

 

Warm regards,

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ATO Certified

Devotee

Replies 13

Hi @tomnguyen

 

I’ll try to answer your questions and provide some links for further reading. The following is not financial advice.

 

You asked:

  1. How can we contribute $15,000 concession super amount each to our super fund accounts before 30/6/2018 ? Is there any special account we need to open?

There is no ‘special account’ you need to open. Basically the First Home Super Saver Scheme (FHSS) allows you to make voluntary contributions from 1 July 2017 to your existing super fund(s).

 

Ensure your contributions are eligible and that your super fund will release the money under the FHSS – refer here for some good pointers on eligible concessional and non-concessional contributions for the FHSS. 

 

Depending on the amount of eligible contributions you and your wife have put into super from 1 July 2017, when you are ready to buy or construct a house, you can apply to the ATO and request to withdraw those contributions and associated earnings.

 

To be clear with dates;

  • you can make eligible fund contributions towards the FHSS from 1 July 2017 onward
  • you can request the release of your eligible FHSS savings anytime from 1 July 2018 onward.

 

As a side note, remember that if you contribute too much to your super, you may have to pay extra tax. Be sure to read up on the existing concessional and non-concessionalsuperannuation contribution caps.

 

You asked:

  1. Next Financial year, from 1/7/2018. If we both contribute $15,000 a big lump sum at the beginning of the year, then buy our first home a few months later (still in FY 2019), can we still take out $30,000 each?

Potentially yes, provided you had already $15,000 worth of eligible contributions/earnings in the 2018 FY. Please refer back to the FHSS dates I mentioned above, and consider that under the FHSS you can withdraw eligible contributions and amounts of associated earnings up to;

  • A maximum of $15,000 from any one financial year.
  • A maximum of $30,000 in total across all years.

I hope this info helps.

 

Cheers, Michael

Please note: I am a ATO employee that helps out here voluntarily in my own time.

14 REPLIES 14
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Best answer

ATO Certified

Devotee

Replies 13

Hi @tomnguyen

 

I’ll try to answer your questions and provide some links for further reading. The following is not financial advice.

 

You asked:

  1. How can we contribute $15,000 concession super amount each to our super fund accounts before 30/6/2018 ? Is there any special account we need to open?

There is no ‘special account’ you need to open. Basically the First Home Super Saver Scheme (FHSS) allows you to make voluntary contributions from 1 July 2017 to your existing super fund(s).

 

Ensure your contributions are eligible and that your super fund will release the money under the FHSS – refer here for some good pointers on eligible concessional and non-concessional contributions for the FHSS. 

 

Depending on the amount of eligible contributions you and your wife have put into super from 1 July 2017, when you are ready to buy or construct a house, you can apply to the ATO and request to withdraw those contributions and associated earnings.

 

To be clear with dates;

  • you can make eligible fund contributions towards the FHSS from 1 July 2017 onward
  • you can request the release of your eligible FHSS savings anytime from 1 July 2018 onward.

 

As a side note, remember that if you contribute too much to your super, you may have to pay extra tax. Be sure to read up on the existing concessional and non-concessionalsuperannuation contribution caps.

 

You asked:

  1. Next Financial year, from 1/7/2018. If we both contribute $15,000 a big lump sum at the beginning of the year, then buy our first home a few months later (still in FY 2019), can we still take out $30,000 each?

Potentially yes, provided you had already $15,000 worth of eligible contributions/earnings in the 2018 FY. Please refer back to the FHSS dates I mentioned above, and consider that under the FHSS you can withdraw eligible contributions and amounts of associated earnings up to;

  • A maximum of $15,000 from any one financial year.
  • A maximum of $30,000 in total across all years.

I hope this info helps.

 

Cheers, Michael

Please note: I am a ATO employee that helps out here voluntarily in my own time.

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Newbie

Replies 0

Thank you for your great answers. It is much clearer now.

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Initiate

Replies 11

@Miccles

 

Thanks Michael for your answer and this post helps for other members in the community. 

 

My question is:

I have purchased the land this month which will be released for construction on April 2019. I will start the home construction after that. So far paid 10% as a initial deposit for the land and remaining amount i have to pay in April 2019 during the property release. After that i have to start the construction.

Am i eligible for FHSS? 

Can i contribute the super this year and next year to get benefits of FHSS?

 

Please advice.

 

 

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Community Support

Replies 10

Hi @rajvenka,

 

Thanks for reaching out again!

 

As stated in your original query, to be eligible for FHSS, you must have received released amounts from the FHSS before you sign a contract to purchase or construct a residential premises or land. You can find this information under the 'Applying to release your savings' section of the First Home Super Saver Scheme information on out website.

 

Thanks, JodieH.

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Initiate

Replies 9

Thanks for your information. One more question,

 

My partner join with me during home construction process which will be sometime April 2019 once land is available for build. Will my partner able to save money under FHSSS and withdraw when she will add as secondary person of this agreement in April 2019. Please let me know what is eligiblity criteria?

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Community Support

Replies 8

Hi @rajvenka

 

Thanks for your question!

 

You can find the eligibility criteria for the FHSS on our website. You will not be eligible for the FHSS if you've entered into a contract to purchase a residential premises or land before 1 July 2018. You can only enter into a contract after you've received a release of your funds. 

 

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

 

Thanks, JodieH. 

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Replies 7

@JodieH Could you please help me to understand what FHSS works for my unique scenerio.

 

I will have land agreement this month and Partner wont be able to contribute during initial land contract agreement. But later in 2019, my partner able to join and will be able to join as co-contributor before contrustion starts.

 

I understand now i am not eligible as i am sign the contract. 

 

So my question, whether she can contribute to Super this year and next year. Then request ATO to releasing the amount before she join as joint owner for same land agreement along with me. 

 

your answer to this question will really helps.

 

Sorry for inconvinence.  

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Initiate

Replies 6

@@JodieH Could you please provide your inputs on below query?


Repositing here:

Could you please help me to understand what FHSS works for my unique scenerio.

 

I will sign the land agreement this month  but at this moment my partner wont be able to contribute during this initial land contract agreement. I am going to pay 10% amount.

 

But later in 2019, my partner will be able to join and she will be co-contributor for this property and this agreement is planned to do before the contrustion starts.

 

Based on your response, I understand that i am not eligible as i am going to sign the contract in this month. 

 

But my question, whether my partner can contribute to Super this year and next year till property available for construction. Then request ATO to releasing the amount and she would be able to contribute and will be co-owner for same land and agreement will be signed with both of us name.. 

 

So under this circumtance, will partner able to get benefits of FHSSS?

your answer to this question will really helps.

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Community Support

Replies 5

Hi @rajvenka,

 

Thanks for reaching out!

 

We're looking into your query further with a specialist area. We hope to get back to you as soon as possible.

 

Thanks, JodieH.