Eligible participants in the scheme are able to make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into their super fund to save for their first home.
To qualify for the scheme, people must:
• Not have previously owned property in Australia
• Either live or intend to live in the premises
• Intend to live in the property for at least six months of the first 12 months they own it
Participants must be over 18yrs, can apply for the release of voluntary contributions up to a maximum of $15,000 from any one financial year and $30,000 in total across all years. The released funds will be taxed at the individuals marginal tax rate less a 30% offset.
Essentially, two people buying property can both take advantage of the scheme, potentially having $60,000 between them to put towards the purchase of their first home.
If you have an interest in the FHSS scheme please contact us at Cultiv8 Financial.