If you’re trying to save for your first home deposit, the government’s scheme that taps into super’s tax breaks is about to get even better.
In last year’s budget the government proposed to boost the First Home Super Saver scheme for first home buyers. This is now law, effective from 1 July 2022. The current scheme allows you to withdraw up to $30,000 of the voluntary contributions you’ve made to your super (plus earnings, less fees and tax) to buy your first home.
The good part is that because you’re saving through super, you pay less tax than if you were saving outside super, which means you could build a bigger deposit more quickly. If you’re a couple, you can both use the scheme so you could potentially save up to $100,000 for your home deposit.
How much can I contribute and save?
To start saving for your deposit, all you have to do is make additional contributions (either by making a salary sacrifice before-tax contribution or voluntary after-tax contribution) into your super each year, within the annual contribution limits. See the table below for more details.
| Before tax contribution limits | Maximum per year you can use for your deposit | Total amount you can save for your house deposit | |
| 2021/21 | $27,500 | $15,000 | Up to $30,000 |
| From 1 July 2022 | $27,500 | $15,000 | Up to $50,000 |
Things to note:
- You can only make one withdrawal for your deposit under the scheme.
- Remember that your employer’s compulsory contributions also count towards the before-tax contributions limit.
How much can I withdraw and when?
You can apply to have a maximum of $15,000 of your additional contributions from any one financial year included in your eligible contributions to be released under the First Home Super Saver scheme. The amount eligible to be released will increase from $30,000 to $50,000 from 1 July 2022. You can only make one withdrawal for your deposit under the scheme.
You’ll need to apply to the ATO to withdraw your contributions. You can apply online using your MyGov account linked to the ATO. Once the ATO releases your funds, you have up to 12 months to sign a contract to purchase or construct your home.
We're here to help
If you’re an Aware Super member and want to know how you could make the most of this scheme, a superannuation adviser can answer your questions. Best of all, you don’t pay extra for this simple advice service – it’s all part of your membership.
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