Recent changes to superannuation funds may start to affect the housing market. Two such measures are the First Home Super Saver (FHSS) Scheme, and the downsizing contributions into superannuation funds. These changes were introduced by the Australian Government in the 2017-2018 Federal Budget.
Here is a brief look at what these two super housing measures are and what they could mean moving forward.
First Home Super Saver Scheme
The FHSS Scheme, which went into effect in July of 2017, allows those who have never purchased a home before to make voluntary concessions into their super funds to help save for a home. And as of July 1, 2018, you can now apply to release those contributions to go towards buying a home.
No matter your age, you can make eligible contributions into your super, according to the Australian Taxation Office. However, only those over 18 will be able to withdraw the funds. You must also meet the following criteria:
- Have never owned property of any kind in Australia.
- Must plan to live in the property at least 6 months out of the first 12 months of ownership.
- Have never released FHSS funds previously.