30/07/2018

With the First Home Super Saver Scheme (FHSS Scheme) recently coming into effect on 1 July 2018, it’s worthwhile looking at some of the key features of this new scheme.

The FHSS Scheme was introduced to reduce pressure on housing affordability by allowing those eligible under the FHSS Scheme to make voluntary contributions and non-concessional contributions into their superannuation fund to help save for a first home.

For starters to be eligible under the FHSS Scheme, you must:

•    be a member of a superannuation fund;
•    be aged 18 years or older;
•    not own property in Australia (whether vacant land, residential land or other types of land);
•    have never previously held an interest in a lease of land in Australia (being a lease of 50 years or more);
•    not currently and have never previously held a company title interest in land in Australia.

The strictness of the property ownership test is modified in that the test may be waived by the ATO if you have suffered financial hardship (regulations to be issued will specify the details of the hardship required to satisfy this test).

Provided that you satisfy the above eligibility requirements you will effectively be able to request the ATO to issue a FHSS determination on or after 1 July 2018. This determination will specify the maximum amount, as at the date of the determination, which can be released to you under the FHSS Scheme.

It is important to note that once you have acted upon a determination by requesting the ATO to issue an FHSS release authority you will cease to be eligible to request a subsequent FHSS determination.

The SUPERCentral Governing Rules have been updated to accommodate the First Home Super Saver Scheme.

The Governing Rules will allow trustees to act upon FHSS release authorities, to accept voluntary contributions which are eligible for the FHSS scheme and to permit the trustees to accept non-concessional contributions, which are intended to qualify as the re-contribution of unapplied FHSS release amounts.

We can assist members with the FHSS, with documents to formally request the ATO to issue an FHSS release authority for the purpose of the FHSS Scheme.

For further information, please contact Townsends Business & Corporate Lawyers on (02) 8296 6222 or info@townsendslaw.com.au to see how we can assist.