In last year’s Federal Budget the Government announced that they intended to increase the total amount an individual could access via the First Home Super Saver Scheme (FHSSS) to fund the purchase of their first home from $30,000 to $50,000.
This scheme will help younger Australians access the housing market by allowing them to save within their super, and when ready to purchase, withdraw those funds, along with the interest earned to help pay for the purchase of their first home.
The change to the amount someone can withdraw was recently legislated and is expected to come into effect from 1 July 2022. With this year’s Federal Budget being handed down by Treasurer Josh Frydenberg on the evening of Tuesday 29 March, and there not being any changes announced to this rule, we can be confident that it will come into effect from 1 July 2022.
For further information on the First Home Super Saver Scheme, please see our webpage, Understanding super contributions and taxes.
2022/23 Federal Budget Updates
Superannuation Guarantee increase
Australians are being set up to retire with more money as the compulsory Superannuation Guarantee rate will rise from 10% to 10.5%.
Reduced pension minimum drawdown rates extended
As part of the 2022/23 Federal Budget, the Government has announced their intention to extend the reduced pension minimum drawdown rates.
Increased flexibility for older Australians
Increased flexibility for older Australians by removing the requirement to fulfil a work test prior to contributing, as well as lowering the age at which a downsizer contribution can be made.