The Federal Government has now just released a draft legislation announcement of its First Home Super Saver Scheme, which from all indications will be controlled by the Australian Taxation Office (ATO). They will have the authority to determine who is eligible to withdraw funds from their super fund to contribute towards buying their first home.
People wishing to withdraw from their super fund for a contribution towards buying their first home would need to apply to the ATO. The ATO intern will determine the maximum they can withdraw. People will need to be over 18 years of age and the property they are intending to purchase needs to be their first property acquisition.
The maximum a member can withdraw is $30,000 from a member’s voluntary contributions along with any additional amounts earned by the super fund on that contribution.
One would have to question how effective the “First Home Super Scheme” will be knowing how little members are contributing to superannuation and the size of the average fund.