First Home Super Saver Scheme amended

The cap on the amount of contributions that can participate in the First Home Super Saver Scheme (FHSS Scheme) has been raised to $50,000 from $30,000 for both voluntary concessional and non-concessional contributions.

Townsends Lawyers executive consultant, Michael Hallinan has pointed out that contributions made on or after 1 July 2017 are eligible for the scheme and the $50,000 cap on eligible contributions only applies to an individual if they have made no withdrawals under the FHSS scheme before 1 July 2022.

Eligible contributions are personal payments made by an individual, while employer and third-party contributions are not eligible to participate in the scheme. The current limit of $15,000 of eligible contributions made per financial year also continues to apply.

The amendment to the scheme is set to benefit first home buyers and individuals who are able to make additional voluntary super contributions.

As part of the scheme, the Australian Taxation Office (ATO) also determines the maximum releasable amount for an individual which is equal to the sum of 85% of eligible deductible contributions, 100% of eligible non-deductible contributions, and associated earnings on those contributions.

The amendments to the cap on contributions will apply from 1 July 2022.