First Home Super Saver Scheme impacts to begin in July

The impacts of the Federal Government’s First Home Super Saver (FHSS) Scheme will begin to materialise in July 2018, as the voluntary contributions of those who took part become available. However, the effect this will have on the property market is still a relative unknown.


From July of 2017 first home buyers have been able to make additional voluntary contributions to their super, to the tune of $15,000 per year up to a $30,000 limit, at a flat tax rate of 15%. This effectively generates a 15% tax reduction. The scheme was devised as a way to help first home buyers save for their initial deposit, using their superannuation as the financial vehicle.

The effects will start to be seen in July of this year, as from that point on the voluntary contributions will be available for withdrawal. It will be interesting to gauge the scheme’s effectiveness in engaging younger Australians with a system that, for the most part, has little bearing on their immediate future.

Ryan Morse, a Financial Advisor with the Hillross group, explains.

“Until you’re really drawing any benefits from the system, I get it, with 30 years to go for a younger person it’s tough to see the light. But I think this scheme will help engage everyday australians into a wonderful system that at some point in the future they will find extremely beneficial.”


“This is a much more positive step for a system that’s had quite a bit of negativity around it. This additional legislation is a reduction in the barriers to accessing funds, albeit a small step.”


Details of the FHSS Scheme

To qualify you must:

  • have not previously owned property in Australia
  • have not previously released FHSS funds
  • either live or intend to live in the premises you are buying as soon as practicable
  • intend to live in the property for at least six months of the first 12 months you own it, after it is practical to move in.

You can apply for the release of voluntary contributions up to a maximum of $15,000 from any one financial year and $30,000 in total across all years.

But will it work?

One of the goals of the Scheme was to decrease the barriers faced by young Australians when purchasing their first home. Come July 2018, the results will begin to trickle in. It will be an interesting time for Agents and Vendors alike, as they begin to see what the effects are and how many young Australians have taken up the offer.

One point must be made, that this scheme has a maximum voluntary contribution amount of $30,000. So not all contributions will be withdrawn in the scheme’s first year. So the effects may take some time to materialise. Watch this space…


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