The government is giving the First Home Super Saver Scheme another tweak in a bid to make it more attractive to people saving for a mortgage deposit.
Treasury Laws Amendment (2023 Measures No.3) Bill 2023, which was introduced in the House of Representatives yesterday, includes provisions designed to make the scheme more flexible.
Under the FHSSS, super fund members who make voluntary contributions can apply to have up to A$15,000 of voluntary contributions from any one financial year, and associated earnings, released for the purchase of a first home.
The maximum amount that can be released under the scheme is $50,000.
Under current rules, once an individual has made an application to the Australian Taxation Office for release of funds under the scheme, they are not able to amend or revoke the application.
The new rule in the bill allows individuals to amend or revoke their applications.
The bill also extends the time individuals have to request a release authority after entering into a contract to buy a home from 14 days to 90 days.
Another provision clarifies eligibility for the scheme. One condition of eligibility is that the applicant has never held a relevant interest in real property or land. The bill amends the FHSSS rules to ensure this condition refers to the point in time when an individual becomes a property owner (not when a contract has been signed).
Tax rules will also be amended to take account of this increased flexibility.