While buying a first home may seem like a pipe dream for many Australians, we share an example of how our Brisbane-based clients made the most of the First Home Super Saver Scheme (FHSSS) to effectively and quickly gather a house deposit.
Before we delve into our client case study, we are going to briefly touch on what the FHSSS is and who is eligible for it.
DISCLAIMER – The information provided in this blog is general and does not consider your individual financial needs or objectives. It does not constitute personal advice. We recommend seeking out professional and independent financial, legal and tax advice which has been designed for your individual situation before acting on any information contained below.
What is First Home Super Saver Scheme?
As the name implies, this scheme assists homeowner-hopefuls to save for their first home, by allowing them to put aside money within their super fund to use for their deposit.
People can contribute up to $15,000 a year, and this amount must be within existing contribution caps.
Eligible contributions to the FHSSS include:
- Voluntary concessional contributions (i.e. salary sacrifice amounts).
- Voluntary non-concessional contributions: This includes personal after-tax contributions and transfers from foreign funds such as KiwiSaver .
From July 1, 2022 the FHSSS maximum releasable amount will increase from $30,000 to $50,000. More about this in our superannuation changes blog.
First Home Super Saver Scheme Eligibility
To withdraw the money under the scheme:
- You must be 18-years-old or older,
- You can’t have owned a property in Australia before, including vacant land, a commercial property or an investment property (Unless it’s been determined that you have suffered financial hardship),
- You can’t have made a FHSS release request under the scheme in the past.
NB: If you meet the above eligibility criteria you can still buy a property with another person who has bought a home previously and thus doesn’t meet the above criteria.
First Home Super Saver Scheme Example
Recently we assisted one young North Brisbane family with personal insurances and the first home super saver scheme.
The family, originally from the Czech Republic, had recently immigrated from New Zealand to Australia. They were hoping to save enough for a deposit and purchase their home within 12 months of moving here.
They wanted to move their KiwiSaver accounts to Australia and wanted to try use them for their first home with the FHSSS. We recommended an Australian superannuation fund and assisted with the transfer and got it deposited in June and tied that in with the overall plan with the first home super saver which involved then commencing salary sacrificing for a year starting the following financial year.
Bringing their Kiwisaver to Australia helped simplify their finances and contributed towards buying their first home, then salary sacrificing got them to their deposit as quickly as possible.
They were able to successfully save and buy their house within about 16 months of starting the plan and now they’re feeling settled and can concentrate on raising their family here.
Glenn and the team are great to deal with in regards to anything finance related. He helped me and my family to successfully purchase our first property and also to ensure our lives are financially secured whatever happens. Thanks Glenn.
Talk to Precision Wealth Management
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Please don’t hesitate to contact us today on 1300 200 012.
Precision Wealth Management is a local, privately-owned financial planning firm based on Brisbane’s northside.
Our certified advisors work with each individual client to determine the best wealth creation strategy based on their unique situation.
We strive to stay at the forefront of the industry, and our investment approach is based on decades of research.
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Our services include Superannuation Advice And Planning, personal Insurance Advice, Budgeting And Cashflow Management, Investment Strategy And Advice, Aged Care Financial Advice, Retirement Planning Advice, and Debt Reduction Financial Planning.
At Precision Wealth Management, we offer flat fee pricing which is determined on the complexity of the work – not the value of your investments.