Super savings and first home deposit

Charlotte BeveridgeApprenticeships, Electrical Pre-Apprenticeship training, Money Matters, TraineeshipsLeave a Comment

Cbus Super: An industry super fund

Saving for your first home? There’s a new scheme in town. Find out more in this guest blog from Cbus.

To help more first home buyers get into the property market, the Government introduced a First Home Super Saver (FHSS) scheme.

The FHSS scheme allows you to make voluntary contributions (before or after tax) into your super, which you can then later withdraw for your first home deposit. You can contribute up to $15,000 per financial year, up to a total of $30,000.

The main benefits of the scheme are taking advantage of reduced tax rates through super and potentially higher earnings on your savings – which all helps in saving up for a deposit!

You may be eligible if you:

  • have never owned property or land in Australia
  • intend on purchasing a property for residential purposes; and
  • will live in the property for at least six of the first 12 months you own the property

How does it work?

Any voluntary contributions you’ve made into your super from 1 July 2017 could be eligible savings as part of the scheme – there’s no need to open a separate account.

Any before-tax contributions (for example, salary sacrifice) will be taxed at 15% on the way in, and any investment earnings on these contributions will also be taxed at 15%.

From 1 July 2018, you’ll be able to withdraw these funds by applying to the Australian Taxation Office (ATO). Once determining you’re eligible, the ATO will arrange for your money to be paid to you from your super fund. You then have 12 months to sign a contract – or you may be able to ask the ATO for a 12-month extension. Alternatively, you could recontribute the amount into your super.

How can I use super to save for my first home deposit?

Benefits of the scheme

  • Tax savings. Before-tax contributions into super (for example, through salary sacrificing) will be taxed at 15%. For most people, this will be less than their marginal tax rate – which could be up to 45% plus the Medicare levy.
  • Potentially higher earnings on your savings. You might earn a higher return on your savings if the deemed rate is higher than what you’d get in your regular savings account or term deposit.

Want to talk it over?

If this scheme interests you, it’s a good idea to talk to a tax agent or financial adviser to see whether this suits your situation. Cbus members can access qualified financial advisers over the phone as part of their membership on 1300 361 784 or get more information at

The information is about Cbus. It doesn’t take into account your specific needs, so you should look to your own financial position, objectives and requirements before making any financial decisions. Read the Cbus Product Disclosure Statement to decide whether Cbus is right for you, or call 1300 361 784 for a copy.


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