Albanese govt reforms first-home buyer program
The federal government has made it easier for first-home buyers to access the First Home Super Saver Scheme.
Previously, if first-home buyers wanted to use the scheme, they had just 14 days to request a release of savings after entering into a contract. That has now been extended to 90 days.
“The changes will also apply to eligible individuals who applied from 1 July 2018, which will help Australians who engaged in the scheme in good faith, finally access the money they saved to purchase their first home,” Minister for Financial Services Stephen Jones said.
How the First Home Super Saver Scheme (FHSS) works
The FHSS lets first-home buyers save for their deposit by making voluntary contributions (both before-tax concessional and after-tax non-concessional) into their superannuation account.
Subject to conditions, first-home buyers can reclaim these contributions – plus associated earnings – when they want to buy their first home, which can be any new or existing home within Australia.
First-home buyers can apply to have a maximum of $15,000 of their voluntary contributions from any one financial year included in their eligible contributions to be released under the FHSS, up to a total of $50,000 contributions across all years. (Please note, the limit was $30,000 up to 30 June 2022.)
First-home buyers will also collect the associated earnings, which are not the actual earnings that get accumulated but a deemed amount of earnings calculated based on a specific formula.
Please get in contact if you’d like more information about buying your first home and what assistance may be available to you.
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