Since 1 July 2018, eligible prospective first homebuyers are allowed to withdraw their voluntary superannuation contributions* and, an amount of associated earnings to assist with the purchase or construction of their first home. Importantly, to apply to withdraw these funds, a determination and release request needs to be made to the ATO.
The maximum amount that can be withdrawn is $15,000 of voluntary superannuation contributions per financial year made since 1 July 2017 (up to a total of $30,000 across all years), plus associated earnings^. Tax is payable on the associated earnings and concessional contributions portion of the withdrawal (taxed at marginal tax rates, including the Medicare Levy, less a 30% tax offset).
Notably, couples that both meet the eligibility requirements have the chance to withdraw up to $60,000 of contributions plus associated earnings.
*85% of concessional contributions (personal deductible contributions and salary-sacrificed amounts only) and 100% of non-concessional contributions.
^Deemed rate of return i.e. 90-day Bank Bill rate plus three percentage points (shortfall interest charge rate).