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Using The Super Home Saver Scheme To Buy Your First Home

Taking the first step onto the property ladder can sometimes be simpler than many might think, especially when the Super Home Saver Scheme could offer an entirely new way to save.

Why was this scheme introduced?

House prices in Australia are much higher now than ever before – and as a result, some first time buyers are struggling to own their own properties. Seeing issues in the housing market relating to this event, in 2017 the Australian government decided it was time to extend a helping hand. The Super Home Saver Scheme was then introduced, to allow potential buyers to save for their deposit through concessionally taxed superannuation.

There are caps on eligible voluntary contributions that can be released under the scheme; with $30,000 being the limit for all financial years, or $15,000 for a single year. These limitations apply to both voluntary non-concessional and concessional contributions.

Eligible contributions can be withdrawn along with associated earnings to either build or buy a first home, from the first of July 2018. In most cases, those hoping to make use of the scheme can potentially withdraw up to 85% of the eligible concessional contributions – and up to 100% of the eligible non-concessional contributions.

Are you eligible for the scheme?

To gain access to contributions, you must prove that:

  • You are over the over the age of 18
  • You have never owned a property before
  • You have never asked for contribution release under the SHSS in the past

You may still be able to apply for the release of contributions if you have previously owned a property, but eligibility will be subject to the ruling of the Commissioner of Taxation.

Eligibility will be assessed on an individual basis by the Australian Taxation Office, meaning that each potential homeowner may have the ability to apply to purchase the same property.

What happens next?

Once you have been awarded under the scheme, your super fund will release your contributions to the Commissioner of Taxation, where the sum will be calculated against your marginal tax rate (minus a 30% offset). You will then have up to twelve months to sign a contract of sale (or to get a contracted new build underway), from the date of the first released payment. Extensions of a further twelve moths can be applied for, too.

Seeking assistance from a professional Financial Planner before you apply could prove to be invaluable, to check if the scheme is a viable option for your personal needs.


Lindale Insurances Pty ltd ATF Lindale Insurances Trust ABN 27 027 421 832 is a corporate Authorised Representative of Millennium3 Financial Services Pty Ltd AFSL 244252 and ABN 61 094 529 987. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement. For Australian Residents Only.

Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of Millennium3. They cannot be reproduced in any form without the express written consent of the author.

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