Superannuation

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The maximum amount able to be withdrawn was $15,000 of voluntary superannuation contributions per financial year from 1 July 2017 to 30 June 2022, up to a total of $30,000 across all years, plus associated earnings^. From 1 July 2022, the maximum amount of eligible contributions able to be released will increase to $50,000. However, the annual amount of voluntary contributions able to be withdrawn remains at $15,000 per financial year. 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 $100,000 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).