Posted on 7/11/2023
The FHSS scheme is a government initiative that allows you to save money for your first home within your superannuation fund. You can save money for a first home deposit with before-tax concessional and after-tax non-concessional voluntary contributions. If you meet the eligibility criteria, funds can be released to you, up to a set limit, along with associated earnings to help you purchase your first home.
You may request to allocate up to $15,000 of your voluntary contributions from a single financial year towards your eligible contributions for release under the FHSS scheme, with a cumulative limit of $50,000 across all years. You will also receive any associated earnings that are calculated based on the Shortfall Interest Charge (SIC) rate.
All released contributions under the FHSS scheme can be used to buy a new or existing home in Australia.
Under the FHSS scheme, you can start saving by:
To be eligible for the FHSS scheme you must meet the following conditions:
Eligibility is evaluated individually. This means that couples, siblings, or friends can each utilise their eligible FHSS contributions to buy the same property. If any of you have previously owned a home, it will not hinder any other eligible person from applying.
You are a first-year medical intern with the goal of purchasing your first home in Australia in the next 3 years. To fast-track your savings, you decide to go into a salary sacrifice arrangement with your employer as part of the First Home Super Saving scheme.
As per the above, based on the above assumptions you would be $4,781 better off using the First Home Super Save Scheme Split as follows:
Tax Savings $3,403
Additional earnings $1,378
Per the above, based on these assumptions you would be $7,135 better off using the First Home Super Saver Scheme. Split as follows.
Tax Savings $5,042
Additional earnings $2,093
To take advantage of the FHSS you can look to take the following next steps.
At the end of the financial year, notify your superannuation fund of your intention to claim a deduction for your personal contributions.
For a downloadable fact sheet on the FHSS scheme click here.
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