New Updates on the First Home Super Saver Scheme: What You Need to Know

Following recent legislative amendments, the Australian Taxation Office (ATO) has updated its guidance on the First Home Super Saver (FHSS) Scheme. The Treasury Laws Amendment (2023 Measures No 3) Act 2023 aims to enhance the flexibility of the FHSS Scheme, effective from 15 September 2024. With these changes, the ATO has released Taxation Ruling TR 2024/4 and Guidance Note GN 2024/1, replacing the outdated Law Companion Ruling LCR 2018/5 and Guidance Note GN 2018/1.

Key Highlights of TR 2024/4:

1. Eligibility: Defines who can participate in the FHSS Scheme.
2. Eligible Contributions: Outlines what types of contributions qualify.
3. FHSS Scheme Determinations: Explains how determinations are made under the scheme.
4. Requesting Release: Details the process for requesting the release of funds.
5. Post-Release Obligations: Clarifies the obligations after a release request.
6. FHSS Tax: Discusses the tax implications of the scheme.
7. Transitional Rules: Provides guidelines for individuals who previously attempted to use the FHSS Scheme unsuccessfully.

Key Highlights of GN 2024/1:

1. Voluntary Contributions: Guidelines for making voluntary contributions.
2. Eligibility to Release Funds: Conditions under which amounts can be released.
3. Requesting Determinations: How to request an FHSS Scheme determination.
4. Releasing Funds: Process of releasing amounts from a superannuation fund.
5. Purchasing or Constructing a Home: Requirements for using the released funds.
6. Failure to Purchase/Construct: Consequences if the taxpayer does not purchase or construct a home.
7. Tax Implications: Detailed tax consequences of using the scheme.
8. Unsuccessful Attempts Before 15 September 2024: Provisions for those who tried to use the scheme before the amendments.

These updates are crucial for anyone considering using their superannuation to buy their first home. Understanding the new guidelines can help you navigate the process more efficiently and take advantage of the improved flexibility of the FHSS Scheme.

If you want to make your homeownership dreams a reality, our mortgage brokers are here to assist you. We can help you understand how these changes impact your situation and guide you through the process. Contact us today at 02 8318 154  or book an appointment on our live calendar to learn more and start your journey toward owning your first home.