First home super saver (FHSS) scheme
Purchasing first home under FHSS Scheme
The FHSS Scheme applies a post-release compliance approach, which means that instead of requiring individuals to provide evidence that they have entered into a contract prior to amounts being released (which would likely to give rise to substantial timing and liquidity issues), individuals are simply required to purchase their first home within 12 months after amounts are released.
Individuals must notify the Commissioner within 28 days of satisfying the requirements of the scheme if the individual meets following conditions are met:
- Enters into a contract to purchase or construct a CGT asset that is a residential premises within 12 months of the time that their first amount is released under the FHSS Scheme
- The price for the purchase or construction of the premises is at least equal to the sum of the amounts that were released
- The individual has occupied the premises, or intends to occupy it as soon as practicable, and
- The individual intends to occupy the premises for at least 6 of the first 12 months that it is practicable to occupy the premises.
New home not purchased?
If an individual fails to purchase their home within the specified period of time, they have the option of re-contributing an amount back into their superannuation or paying an amount of tax that will broadly neutralise the tax concessions they received from accessing the FHSS Scheme.
Individuals can assess the benefit of the FHSS Scheme using the Government's estimator, which indicates the potential benefit, which can be accessed at www.budget.gov.au/estimator.
Last modified: Friday, January 19, 2018