Frequently Asked Questions

What identification will be required to set up an account?
When filling out the application to open a First Home Saver account the individual will need to;

• Provide a TFN
• Provide standard proof of identity
• Complete a declaration that they are eligible.

Where can I set up an account?
The government has proposed that the following providers will be able to offer First Home Saver accounts;

• Superannuation funds
• Life Insurance companies
• Credit unions
• Banks
• Building Societies

Do I still get the First Home Owners Grant?
The First Home Owners Grant (FHOG) is a separate scheme to First Home Saver accounts, and will continue to be available to individuals who are eligible.

I already have some savings and am keen to purchase a home within the next 4 years – am I eligible?
The Government is yet to finalise the detail on First Home Saver accounts, which includes how it plans to help savers with accumulated savings planning to purchase earlier than the required 4 years. Suggestions have been made that a transitional arrangement should be made available for people in your situation, though the Government is yet to comment on this aspect.

Is there a minimum amount to set up an account?
No, you do not need to contribute any money to open an account.

Is there a minimum time period that money is tied up?
First Home Saver accounts are designed to encourage people to develop good savings habits, and a requirement is that before an individual can withdraw their funds the account must have received contributions of at least $1,000 in each of four or more financial years.

I’ve already started saving for a home, can I open an account?
Yes you will be able to invest your existing savings in a First Home Saver account, but you will not be able to access the money for 4 years, assuming you meet the minimum specified contributions. 

What if I set up an account and don’t make any further contributions?
If you set up an account with an initial contribution of $1,000 and do not make any further contributions you will be unable to withdraw the funds for a home deposit. You must contribute at least $1,000 in each of four or more years to release the funds.

My partner wants to buy a house next year. If I open a First Home Saver account, can I get access to the funds if we buy a house together?
It is possible for your balance to be released even if the four year conditions has not been met, if the account provider is satisfied that your partner meets that condition in respect of their own account.

I assisted my ex-partner in paying off a mortgage – does this disqualify me from a FHSA?
No, provided you were not listed as an owner of that property.

Can I set up a joint FHSA account with my partner?
No, the account needs to be an individual account, so each partner must have their own account. But you can make contributions to your partner’s First Home Saver account.

Personal Contributions

How will I be able to deposit money into my First Home Saver account?
Accounts will generally be set up to accept Direct Debit, Cheque, BPay.

Can I contribute as much as I like to the account?
There is no annual limit on contributions, but there will be a cap of $75,000 for First Home Saver account balances after which no further contributions can be made. This limit will be indexed for inflation.

Are government contributions included in the annual and lifetime limits?
No. Government contributions and earnings on investments are not included in these limits.  The $75,000 lifetime limit only applies to individual contributions (which also includes employer or family contributions).

What happens if I contribute beyond the $75,000 cap?
The additional money will be refunded back to the account holder.

I can’t really afford to contribute much of my salary. Are there any minimums?
You don’t need an initial contribution to open an account.  After that, you can contribute as little as you like. Before money can be withdraw from the account there needs to be contributions of at least $1,000 in each of four or more years, so having a regular savings plan (like a monthly direct debit) will be a good idea.

Can my parents or family put money into the account as a gift, such as birthday, graduation, engagement or wedding?
Yes. Why not strike up a deal with your parents to match whatever you put in?

Can my boss make contributions for me?
Yes, but they must be from post-tax income. Your employer may already have a relationship with your superannuation fund, who could provide your First Home Saver account too.

Government contributions

How will the Government keep a record of savings made to First Home Saver accounts to calculate the bonus Government contribution?
Individuals will not need to apply for the Government contribution. The ATO will calculate the amount owed and pay it into the individuals account after the end of the financial year. Your Tax File Number will be used by the ATO to do this.

Investment of Funds and Fees

What happens if the stock market goes down? Can I lose money?
Different types of account providers (for instance superannuation funds, or banks) will offer different types of First Home Saver accounts. These may have a variety of investment options, which vary from low risk to high risk. Generally speaking, higher risk investment options will have better investment performance over the longer term, but you will need to carefully consider which type of account and investment option suits you, given your investment time frame and personal circumstances.

Will there be fees on these accounts?
Each provider will have a cost associated with administering First Home Saver accounts, so there will generally be a fee to manage the account. Fees will be determined by account providers, but the Government has said they would like the fees to be low.

Withdrawing

When can I withdraw the funds?
Savings must have accumulated for a minimum of 4 years after which you can withdraw funds to pay for a deposit to purchase a first home or land to build on.

What if I go overseas?
If you depart Australia permanently, you can transfer your money into your superannuation fund, and then it’s subject to the standard release provisions in superannuation.

What if my savings exceed the minimum required deposit for a first home, can I use the difference to go towards renovations?
No… the entire balance must be withdrawn and used as a deposit on a first home. The account must then be closed after the payment of a first home deposit.

If I purchase a home though inheritance or marry someone who already has a home, can I use the savings in my FHSA for other things?
No…if you decide that you no longer need the savings for a first home deposit, then the money can be transferred into you superannuation account and the account will be closed. It’s important to note that once the account is closed, you will be unable to open another one.

What if I have an accident and can’t work anymore. Can I get access to the money?
You can choose to transfer your money to a superannuation fund where it is then subject to the requirements for early release, which includes possible access for temporary and permanent disablement or severe financial hardship.

Can I use the funds for an investment property?
No… First Home Saver accounts can only be used to purchase a first home, or build on land – and the home must be lived in for a continuous period of 6 months.