First Home Super Saver Scheme

First home supersaver scheme: Salary sacrifice for first home-owner savers – super contributions made from 1 July 2017 may be withdrawn from 1 July 2018 for a first home deposit. See further: First Home Super Saver Scheme

First Home Super Saver Scheme

First announced in the 2017-18 Federal Budget, this is a scheme to encourage first home buyers by enabling super funds to house the savings for a deposit.

From 1 July 2017, the Scheme will allow first home buyers to salary sacrifice into their superannuation fund. The tax advantages of doing so are intended to encourage them to save for a house deposit.

Both members of a couple will be able to take advantage of the concession.

Super contributions made from 1 July 2017 may be withdrawn from 1 July 2018 for a first home deposit. Concessional contributions and earnings withdrawn will be taxed at marginal rates less a 30% offset.

Up to $15,000 per year can be contributed, $30,000 in total within existing caps.

Both members of a couple can combine savings for a single deposit to buy their first home together.

The FHSS Scheme applies to the concessional and non-concessional contributions (subject to the contribution caps) that an individual voluntarily makes through either personal contributions or through salary sacrificing arrangements, provided that those contributions are made within the existing contribution caps.

The Scheme uses the standard release authority rules in Division 131 (applying from 1 July 2018) of the Taxation Administration Act 1953  to facilitate the release of amounts from superannuation.

For more information on Etax, myTax ATO, myGov and online tax return, please contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

First home saver account

Unfortunately this Scheme is now finished by the Australia Government and these accounts are now treated like any ordinary account.

If you have an existing First Home Saver Account, don’t miss out on any government contributions you may be eligible to claim – you have until 30 June 2017 to lodge your claim.

From 1 July 2015:

  • you can use the balance of your account for any purpose
  • tax concessions cease
  • your account is included in any income and assets tests that apply to government benefits, including the family tax benefit
  • you need to report interest from your account in your tax return (starting with interest earned in the 2015–16 financial year)

Tax obligations

Up to 30 June 2015, earnings on FHSAs were taxed at 15% and paid by the account provider. As an account holder, you didn’t have to declare FHSA earnings in your tax return. From 1 July 2015, FHSA’s will become an ordinary account. You will need to include your earnings in your tax return and pay tax at your marginal rate.

Outstanding government contributions

If you’re entitled to a government contribution for a period up to 30 June 2014 that ATO haven’t paid yet, ATO will still pay it to you (you have until 30 June 2017 to make a claim).

If your account is closed, you should complete a Government contribution destination nomination form to tell us where to pay any outstanding amounts. If you don’t complete this form, ATO will mail you a cheque.

How and when the government contribution is paid

Before the government contribution can be paid two things must happen:

  • You must lodge a tax return – or, if you don’t need to lodge a tax return, lodge an FHSA notification of eligibility form.
  • Your account provider must lodge an activity report with us by 31 October each year.

If you think you were entitled to a government contribution but haven’t got one, check that you’ve met the requirements above before you contact us.

Once ATO have that information, ATO have 60 days to calculate and pay the 17% government contribution. This means that many people don’t receive their government contributions until January in the following year.

For more information on Etax, Mytax and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au