With house prices in most states continuing to rise, and wage growth nowhere near keeping up, breaking into the property market is getting tougher and tougher for young Australians.
So, to help make things easier for first home buyers, the Federal Government has introduced the First home super saver scheme which will allow first home buyers to save for their first home within the tax-friendly environment of their super fund.
How will it work?
From 1 July 2018, eligible first home buyers will be able to access some of the money they’ve personally contributed to their super since 1 July 2017 to help with a house deposit.
Is there a limit on the amount that can be contributed?
The maximum amount you can contribute to your super for a home deposit using the scheme is $15,000 each year, and $30,000 in total. These contributions must be within existing concessional or non-concessional contributions caps.
How much can I access?
You can only access voluntary contributions made into your account since 1 July 2017 which include salary sacrifice contributions and personal contributions.
You can apply to access a maximum of $15,000 of your voluntary contributions from any one financial year and up to $30,000 across all years. You’ll also receive an amount of earnings that relate to those contributions.
Can the money be used to buy an investment property?
You must intend to live in the premises as soon as possible after purchase and live there for at least six months of the first twelve months that you own it.
The money can’t be used to purchase a houseboat, a motor home, vacant land or any premises not capable of being lived in as a residence.
When can you apply?
When you're ready to withdraw the money from your account under the First home super saver scheme you'll need to apply to the Australian Taxation Office (ATO). For more information go to ato.gov.au. You can apply online using your myGov account linked to the ATO.
Want to know how much you’ve personally contributed to your Tasplan super since 1 July 2017?
To see how much you could potentially be eligible to access for the First home super saver scheme, simply log in to Tasplan Online. While you're logged in, you can also check your super balance, update your contact details, view your investment options and check your current insurance cover. Alternatively, you can call us on 1800 005 166.
Is the First home super saver scheme a good thing for all first home buyers?
It’s important to note that this new scheme is not for everyone. When making any major financial decision, it’s always a good idea to get advice. If you’d like to have a chat, simply call us on 1800 005 166.
This article contains information or advice that is intended to be general in nature and which was prepared without taking into account your personal objectives, financial situation or needs. Because of that, before acting on any information or advice in this article, please consider whether it’s appropriate to your personal circumstances, talk to a financial planner and consider the relevant guides, available at tasplan.com.au or by calling 1800 005 166, before making a decision about whether to acquire the products. Article updated 8 July 2019.