Source: Australian Taxation Office
On 11 May 2021, as part of the 2021–22 Federal Budget, the Australian Government announced it will make changes to the First Home Super Saver (FHSS) scheme to increase the contributions that can be counted towards the maximum releasable amount to $50,000 and improve the operation of the scheme.
Increase the maximum releasable amount
From 1 July 2022, eligible individuals will be able to include contributions up to $50,000 (currently $30,000) in the maximum releasable amount. Eligible contributions made from 1 July 2017 can count towards the total amount released.
This law received Royal Assent on 22 February 2022. The increased threshold will apply to FHSS determinations made from 1 July 2022. Contributions made since 1 July 2017 can be taken into account to calculate the maximum releasable amount. For further details visit, First Home Super Saver Scheme.
Greater flexibility to correct errors
Additional changes will improve the experience for first home buyers accessing the scheme. The changes will allow greater flexibility by:
- increasing the discretion of the Commissioner of Taxation to amend and revoke FHSSS requests;
- allowing individuals to withdraw or amend their requests prior to them receiving an FHSSS amount, and allowing those who withdraw their request to re-apply for FHSSS releases in the future;
- confirming the Commissioner can return the released FHSSS money to super funds, provided that the money has not yet been released to the individual;
- clarifying that the money returned to super funds is treated as funds’ non-assessable non-exempt income and does not count towards the individual’s contribution caps.
These amendments are announced to come into effect from 1 July 2022, with retrospective application from 1 July 2018. Relevant resources: