The First Home Super Saver Scheme aims to help first home buyers save tax effectively for their home using the tax concessions available in super.
How does the First Home Super Saver Scheme work?
Eligible first home savers can make voluntary contributions into super (within limits). As part of the Scheme, contributions and any earnings attributable to them, can be released to purchase a home. They have 12 months to purchase their first home. If they don’t, they can re-contribute the amount back into super. Alternatively, they can pay the first home super saver tax to retain the money outside super. You must occupy the residence for at least 6 months within the first 12 month period.
Are you are eligible for this scheme?
You can participate in the scheme if you have never previously owned an interest in Australian real property. This includes residential property, vacant land, rural and commercial property. If you have ever had an interest in any of these types of property, you wont be eligible for this scheme. If you are purchasing a property with another person who has previously owned Australian property but you have not, you will be eligible for the scheme, but they wont.
Get advice if you are thinking of using this scheme
Generally there are limits on the amount that you can contribute (it must be within the existing contribution caps). The amount that can be withdrawn is limited to $15,000 of voluntary contributions with a total of $30,000 in contributions made after 1 July 2017.
With all new strategies, please talk to the Milestone Lending Team about whether the First Home Super Saver Scheme will help you achieve your goals.