Did you know that you can use your superfund account with an FHSSS option to help you save towards your first home (PPR)?
First Home Super Saver Scheme (FHSSS)
If you've never owned your own home (Principal Place of Residence - PPR) before, the government has expanded the FHSSS to allow you to:
Voluntarily contribute up to $15,000 per annum
Save up to $50,000 towards your first home (including profits made from your contributions)
How do I start contributing to my FHSSS?
Contact your Superfund to see if they offer FHSSS
Start making regular contributions to your Superfund's FHSSS
Make sure if you're claiming these contributions, you send your superfund your 'Notice of Intention to Claim' before proceeding to the next step
Log into your myGov account
ATO account > Super > Manage Super > First Home Saver
Advise the amount that you've contributed (you can't use your Employer Contributions) that is to be attributed to your FHSSS. This should pre-fill for you, but double check before submitting.
How do I get the money out?
Log into your myGov account
ATO account > Super > Manage Super > First Home Saver
Request an FHSS determination - this will show you on screen what you can withdraw straight away
Make a request to withdraw the money 15-20 days before signing any contracts
Notify the ATO via myGov within 28 days of signing a contract to purchase/construct your home
Am I taxed when the money comes out?
It depends.
Post-tax (non-concessional) contributions have no tax
Pre-tax (concessional) contributions you can withdraw up to 85%* of what you put in, this is added to your taxable income for the year with a 30% tax offset
The superfund will withhold some tax & pay to the ATO on your behalf when you withdraw the funds
A payment summary will be issued - make sure you give it to your all knowing accountant so it's not missed!
*(the amount less 15% contributions tax paid by your superfund)
Anything else?
This can be a great way to save some tax - pay 15% on the contribution but get a 30% offset on the withdraw
Can be a great way to save if you're not that great at it
Can also be a trap if you forget to fill out the form before you sign a contract to purchase your first home - but you'll have more money for when you retire!
You and your partner can do it individually and combine forces (provided neither of you have owned a PPR before)
You can do this even if your partner has owned a home before but you haven't
As always, check with your financial adviser to see if this is the best option for you
More information
Referrals
To discuss any of the above further, you can ring me on 4021 2801.
''No great goal was ever easily achieved"