Super Scheme Legislation Update – not just for first home buyers

Super Scheme Legislation Update – not just for first home buyers

Super Scheme Legislation Update – not just for first home buyers

Announced in the Federal Budget in May, the First Home Super Saver Scheme (FHSSS) aims to help Australians save for a first home through voluntary contributions into their superannuation fund.

If you’ve never owned property in Australia or are experiencing financial hardship the scheme allows you to put super towards a home deposit. A single home buyer could make voluntary super contributions up to $15,000 per year and $30,000 in total while a couple can contribute up to $60,000 in total.

Achieving home ownership is a much more significant objective for many people than building up a retirement income in an account that can't be accessed till at least age 60. This initiative encourages younger Australians to take an interest in their super and may encourage further voluntary contributions after home ownership is achieved.

The scheme could also be seen as a way of helping stimulate the marketplace to benefit current property owners. An increase in property buyers will affect market activity which can affect property prices.

Do you have to be a first home buyer?

No – when the legislation was first proposed it was limited to only first home buyers however the scheme passed by Parliament now applies to home buyers if the Tax Commissioner determines they are suffering “financial hardship”. Regulations determining this definition are yet to be released.

How can I pay the extra money into super?

You can make voluntary contributions into your super with the intent of using that money for your deposit. We suggest you speak to your Accountant first to ensure this is the correct move for you.

How can you withdraw the money?

We believe you need to apply to the ATO for the funds to be released to you however again your accountant can provide you with this information.

Could I afford a property?
If you'd like to know if your current situation could afford buying a property in Broome click here to complete some basic information and we will liase with North West Finance to assist you in owning your own home.

More information?
Click here for the factsheet. 
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