2/2 – Using the FHSSS

We covered how the FHSSS works, who can access and how much you need to contribute. Today let’s look at drawing the savings and the Pro’s of the scheme.

When Can I Withdraw My Savings?
If you are over 18, you can request a FHSSS determination from the Australian Taxation Office (ATO) at any time. Of course, you will have had to have made voluntary contributions into your superannuation before then to be able to access them in the first place.

You must have a FHSSS determination before you sign a contract to purchase any property.

To request the determination, log into ATO online services via myGov, go to the super tab and from the drop-down menu select Manage and then First home saver. The ATO will tell you your maximum FHSSS amount when you apply for the determination.

Once you have received the determination, you can apply via myGov again for a release of the amount specified in your FHSSS determination. And once your savings amounts have been released, you have up to 12 months from the date you requested the release of FHSSS savings to sign a contract to purchase or construct a home.

What Are The Pros?
The FHSSS enables you to save money for your first home in the tax-advantageous structure of superannuation.
The tax treatment is especially beneficial if it is saved via before-tax voluntary super contributions, and it is estimated it could boost potential savings for a deposit for a first home by 30%.

The FHSSS can be used by two people, which means a couple can combine their saved amounts for a deposit.

FHSSS amounts earn the shortfall interest charge within superannuation, which is 5.31% for the October to December quarter 2022, a much better rate than what you could get in a savings account or even a term deposit.

Do you want to know more about this and of course when and where to buy?

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