The Australian Government has introduced the First Home Super Saver (FHSS) scheme to help Australian save for their first home. From the 1st of July 2017, you can make voluntary concessional (before tax) and non-concessional (after tax) contributions into your super fund to save for your first home.
How can you participate in the First Home Super Saver Scheme?
You can participate in the scheme by making voluntary contributions to your super account via:
Speak to your employer to set up a salary sacrifice arrangement
Personal after-tax contributions
You may make a personal contribution directly to your funds
How do you make contributions to your super?
You can make one-off contributions via BPAY, cheque or electronic funds transfers. You can also make regular contributions by direct debit from your bank account.
It is important that you speak to your superannuation provider to find out ways you can make contributions to your super for the purpose of the First Home Super Saver Scheme.
What if you are self-employed?
Individuals who are self-employed or whose employers do not offer salary sacrifice can claim a tax deduction on personal contributions, meaning savings effectively come out of pre-tax income.
Voluntary contributions under this scheme must be made within existing superannuation caps. The total concessional contributions an individual can make, from both compulsory employer contributions and voluntary contributions, including those made under the scheme cannot exceed $25,000 in 2017-18.
For more information about the First Home Super Scheme, please visit the following webpages.
First Home Super Saver Scheme – ATO website
Originally published February 18, 2019 8:00:00 AM