Jul 2017 2 Minutes
First home owners to use super contributions to save for a deposit
Date of effect
1 July 2017 - contributions
1 July 2018 – withdrawals
$15,000 per year and up to $30,000 in total per member – can be either concessional or non-concessional contributions
First home owners will be able to withdraw voluntary contributions they make to super for a deposit. These contributions will generally be made via salary sacrificing into their superannuation fund over and above their normal compulsory superannuation contributions. If they are self-employed or their employer will not allow contributions to be salary sacrificed members are able to claim a deduction for voluntary contributions made under the scheme. Superannuation contribution caps must not be exceeded.
Funds that can be withdrawn for a first home deposit, include the voluntary contributions plus associated deemed earnings. Associated deemed earnings will be calculated using a deemed rate of return based on the 90-day Bank Bill rate plus 3 percentage points.
Concessional contributions and earnings that are withdrawn will be taxed at marginal rates less a 30% offset. Non-concessional contributions that are withdrawn are not taxed, however, the associated earnings will be taxed as above.
Under the measure, up to $15,000 per year and $30,000 in total can be contributed within existing caps. Withdrawals will be allowed from 1 July 2018 onwards. Both members of a couple can take advantage of this measure to buy their first home together.
Click here to view ATO fact sheet on First Home Super Saver Scheme