The Federal Government has introduced a set of Bills on 7 September 2017 which aim to implement the First Home Super Saver Scheme (‘FHSSS’) and also assist older Australians in downsizing. These measures are part of the Government’s budget policy released earlier this year.
Earlier in the year, the FHSSS was introduced in the. Under the proposed legislation, first home buyers will be able to The FHSSS will apply to voluntary superannuation contributions of up to $15,000 per year, and and $30,000 in total, made from 1 July 2017. These contributions will be able to be withdrawn for a home deposit from 1 July 2018.
This Bill proposes to establish the First Home Super Saver Scheme (FHSSS), which will allow individuals who are saving for their first home to take advantage of the concessional taxation arrangements. Under the proposed legislation, first home buyers who satisfy certain criteria can apply for a determination by the Commissioner stating the maximum release amount from a superannuation fund. The criteria are:
While there are proposed limits on the amount of contributions that are eligible for release, the FHSS maximum release amount is proposed to comprise eligible non-concessional contributions, 85% of eligible concessional contributions and other associated earnings.
This Bill proposes that first home super saver tax payable under section 313-60 of the Income Tax Assessment Act 1997 (Cth) will be imposed. The amount of the first home super saver tax will be 20 percent of the person’s assessable first home super saver released amount, which is to be defined within the meaning of the Income Tax Assessment Act 1997 (Cth).
MP Michael Sukkar, Assistant Minister to the Treasurer, noted in his second reading speech that the Bill was aimed at helping first-time home buyers to purchase their first property. He said:
He also noted that the Bills would allow older Australians to downsize.
Treasurer Scott Morrison’s7 May 2017 revealed that the current government had a comprehensive plan to address issues related to hosing. He stated:
In addition the Government will be addressing the issue of foreign investors in two other separate Bills.
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Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No.1) Bill 2017 (Cth), second reading speeches and other associated materials, as published on Timebase LawOne.
First Home Super Saver Tax Bill 2017 (Cth), second reading speeches and other associated materials, as published on Timebase LawOne.
Ashlynne McGhee, Monique Ross and Simon Elvery,(ABC News) 9 May 2017.
The Hon Scott Morrison MP,' (media release) 9 May 2017.
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