Buying your first home with super.
If you want to give your children a head start on saving for their first home, the First Home Super Saver Scheme (FHSSS) is worth considering. It offers a tax-effective way for young people to grow a deposit more quickly and is open to anyone who meets the eligibility rules and has never owned property.
What is the First Home Super Saver Scheme?
The FHSSS allows first-home buyers to make voluntary contributions into their super fund and later withdraw those funds, plus earnings, to put toward a home deposit.
Here’s how it works:
- They can contribute up to $15,000 per financial year, and up to a maximum of $50,000 across all years in voluntary contributions.
- These contributions can be either:
- Concessional contributions (CC) such as salary sacrifice or personal deductible contributions
- Non-concessional contributions (NCC) which is after-tax money contributed from their own savings for which no deduction will be claimed
Children 18 or over can apply to withdraw the total voluntary contributions up to $50,000, plus notional earnings (currently 6.61%) on these contributions, to buy their first home. Whilst children must be at least 18 to withdraw an amount for their first home, they can start saving earlier.
Questions about using your super to buy property for your children?
Using super to help your children save for their first home can be a highly effective strategy, but it must be structured correctly to deliver the intended tax benefits and avoid unintended consequences. Contribution caps, eligibility rules, withdrawal timing, and tax treatment all need careful consideration.
Before gifting funds or making super contributions, speak with our team. We can help you assess whether the First Home Super Saver Scheme is suitable for your family, design the right contribution strategy, and ensure everything is set up and withdrawn correctly when the time comes.
For practical and professional guidance across accounting, taxation, business advisory and financial planning, contact Stratogen Accounting. Based in Noosa, our experienced team of accountants and business advisors support clients throughout the Sunshine Coast and Australia-wide. From tax compliance and bookkeeping to strategic planning, risk management and long-term wealth creation, Stratogen is here to strengthen your financial position and support your success.