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Amendments to the First Home Super Saver Scheme (FHSSS) have officially passed Parliament, upping the amount Australians can draw from their super to purchase their first property.
The passage of the bill increases the maximum amount of voluntary contributions that could be released under the FHSSS from $30,000 to $50,000.
In announcing the bill’s passage, Assistant Treasurer and Minister for Housing Michael Sukkar reported that since 1 July 2018, 26,800 new home buyers had released $371 million dollars worth of savings under the FHSSS.
Expanding the FHSSS was on the Real Estate Institute of Australia’s (REIA) policy wish list heading into the next election.
The bill, called the Treasury Laws Amendment (Enhancing Superannuation Outcomes For Australians and Helping Australian Businesses Invest) Bill 2021, introduces a number of other superannuation measures, including incentives for older Australians to downsize, which could have an impact on property supply in the year ahead.
The amendment reduces the eligibility age for making downsizer contributions into superannuation from 65 to 60 years of age. It’s intended to allow more older Australians to consider moving to smaller homes that may better meet their needs, increasing the supply of larger homes for young families.
Even at the higher income threshold, it’s proven to be a popular measure. The government reports that from 1 July 2018 to the end of January 2022, 36,800 individuals contributed $8.9 billion to their superannuation under this scheme.
The bill also removes the $450 per month income threshold under which employees do not have to be paid the superannuation guarantee by their employer.
The new measures will take effect from 1 July 2022.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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