First homebuyers can now draw on their Superannuation to help fund a deposit for their first home.

As part of the housing affordability measures in the 2017/2018 Federal Budget, individuals will have the ability to withdraw funds out of their superannuation account to be used for a first home deposit.

Under the scheme, from 1 July 2017 voluntary contributions of up to $15,000 per year and $30,000 in total can be withdrawn to fund the property deposit.

Access to the withdrawal may begin from 1 July 2018, following receipt of a release authority provided by the Commissioner of Taxation. The property must be purchased within 12 months, otherwise the funds must be re-contributed back into Superannuation or pay an additional flat rate of tax of 20% of the assessable amount.

If you would like to discuss these changes in legislation – and how they may benefit you – please contact our office.