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First Home Buyers Super Saving Scheme

This post is archived and may not be up-to-date.

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I would appreciate your help with the following FHSS eligibility query:

 

It states under section "Who Is Eligible" on the ATO website (at the following web page: https://www.ato.gov.au/individuals/super/super-housing-measures/first-home-super-saver-scheme/#Eligi...) that you are not eliglible if you are using FHSS amounts to purchase vacant land.

 

However, this appears to conflict with the Australian Government Treasury advice in the following fact sheet where it states that FHSS can be used to purchase vacant land if you plan to build a residential premises on it: 

https://static.treasury.gov.au/uploads/sites/1/2017/08/Post-passage_fact_sheet_-_First_home.pdf

https://static.treasury.gov.au/uploads/sites/1/2017/08/FHSSS-fact-sheet.pdf

 

I would like to withdraw and use my total FHSS concessional contributions/earnings in the future to purchase vacant land (for the purpose of building a residential house that I intend to live in) but am confused by the conflicting advice above.  Hence I would appreciate confirmation from the ATO on whether the FHSS Scheme can be used to purchase vacant land (for building a residential premise).

 

 

 

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Hi @J-022,

 

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

 

The FHSS Scheme allows for individuals to apply to withdraw eligible contributions and associated earnings for the purposes of purchasing their first home. With regards to the types of premises that are applicable, the legislation states that you must enter into a contract to purchase or construct a CGT asset that is a residential premises.

 

You can purchase vacant land under this scheme if you are planning to build a residential premises on this vacant block within 12 months after the release of the first FHSS amount to you.

 

However, as outlined on the ATO website, you cannot use FHSS amounts to purchase vacant land (along with some other property types), if the property is not going to become your home (e.g., an investment property). On this basis, individuals have 12 months from the release date, to sign a contract to purchase or construct a residential premises, at which time they must notify the Commissioner in the approved form that they:

  • have either occupied, or intend to occupy the premises as soon as practicable;
  • intend to occupy the premises for at least 6 months of the first 12 months after it is practicable to do so.

We will update our ATO web-content to make this distinction clearer, so thank you for your feedback. 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.

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Hi @J-022,

 

Welcome to our Community!

 

We've been in contact with a specialist area regarding your query and we hope to get back to you with a response as soon as possible.

 

Thanks, JodieH.

Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @J-022,

 

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

 

The FHSS Scheme allows for individuals to apply to withdraw eligible contributions and associated earnings for the purposes of purchasing their first home. With regards to the types of premises that are applicable, the legislation states that you must enter into a contract to purchase or construct a CGT asset that is a residential premises.

 

You can purchase vacant land under this scheme if you are planning to build a residential premises on this vacant block within 12 months after the release of the first FHSS amount to you.

 

However, as outlined on the ATO website, you cannot use FHSS amounts to purchase vacant land (along with some other property types), if the property is not going to become your home (e.g., an investment property). On this basis, individuals have 12 months from the release date, to sign a contract to purchase or construct a residential premises, at which time they must notify the Commissioner in the approved form that they:

  • have either occupied, or intend to occupy the premises as soon as practicable;
  • intend to occupy the premises for at least 6 months of the first 12 months after it is practicable to do so.

We will update our ATO web-content to make this distinction clearer, so thank you for your feedback. 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.