Super savings ready for withdrawal

FIRST-home buyers can now make withdrawals from their superannuation through a national scheme to help them get into the property market.

The scheme allows first-home buyers to contribute up to $15,000 a year and $30,000 in total. Image: iStock

FIRST-home buyers now can make withdrawals from their superannuation through a national scheme to help them get into the property market.

Australians have been able to divert part of their wage or making voluntary contributions into their super account to help form a deposit since July 1 last year under the First Home Superannuation Saver Scheme (FHSSS), announced in the 2017-18 federal budget.

The scheme allows first-home buyers to contribute up to $15,000 a year and $30,000 in total, within contribution caps, to go towards the purchase of a property, and can accelerate savings through the concessional tax treatment and any associated earnings within a super fund.

These contributions along with deemed earnings can be withdrawn for a house deposit.

Once savings have been released, first-timers have up to 12 months to sign a contract to buy or construct a home.

Those interested can access details on the Australian Taxation Office website.

Originally published as Super savings ready for withdrawal