The First Home Super Saver Scheme (“FHSS”) is a new initiative that passed into law on 13 December 2017. The scheme allows individuals to save towards their first home deposit within the superannuation system as from 1 July 2017.
The FHSS is the government’s response to helping Australians with housing affordability. But is it enough? In Part 2 of our 3-part series on Housing Affordability, we ask whether or not the FHSS is the saviour of the great Australian dream, or is it too little too late?
The FHSS has been created to assist genuine first time home buyers to break into the property market as owners who plan to live in the property.
Individuals can direct up to $15,000 into an eligible FHSS in any one financial year, while total contributions are capped at $30,000 across all years per eligible individual.
“For some first home savers, the FHSS will be genuinely beneficial, helping them break into the property market earlier than might otherwise have been possible,” says Co-founder Harry Chemay.
“These lucky Australians will likely be on above average incomes, able to salary sacrifice aggressively into a FHSS, and who won’t be buying a first home in one of Australia’s capital cities. But for everyone else, the FHSS holds less benefit.”
Watch Harry explain in Part 2 of our 3-part video series on housing affordability in Australia, how the FHSS works and 3 things you need to think about before you decide to use the FHSS.
Download Clover’s white paper Housing Unaffordability: Part 2 for a comprehensive overview of the First Home Super Saver Scheme. In the guide, we explore the key features of the FHSS and whether or not it will help Australians boost their savings enough to buy their first home.
Be sure to catch up on Part 1 of our housing affordability series where we discuss why home ownership among young Australians is on the decline and what they can do to get ahead.