Yes and no. Your superannuation is paid by your employer (9.5 per cent of your earnings and some by the government if you’re a low wage earner) so you have enough money to fund your retirement. While it is your money, you can normally only access it after you turn 65. In 2019, the price of houses does make it hard to get into the property market and, yes, if you could buy property with super it would be an excellent way of funding the purchase of a home, but what about your retirement? There are strict rules around drawing out your super early, and these may stop you from using that money for a property purchase and also a deposit.
The Scheme That Allows Super For a Deposit
The Liberal government ditched Labor’s First Home Saver Account in May 2014 and in 2017 announced a new one called the First Home Super Saver Scheme (FHSSS) to help first-home buyers save for a deposit on a home faster. However, the FHSSS is for first-home buyers only, so anyone who has previously bought one isn’t eligible unless they fulfil a ‘financial hardship’ rule. Also, the scheme relates to super contributions made from July 1, 2017, and not before. Under the scheme, from July 1, 2017, eligible people with a superannuation account have been allowed to make voluntary contributions of up to $15,000 per annum, with a cap of $30,000 over more than 12 months to their super for a deposit to buy their first home. Importantly:
- You can only access FHSS super once.
- You have to live in the home as soon as practicable and stay for at least six of the first 12 months you own it.
- You cannot have owned any property in Australia.
- You must be aged 18 or over.
Always talk to a superannuation expert for the finer details of your individual circumstances.
For more than 38 years, PK Simpson has been helping the people of Australia get the compensation to which they are entitled. Our lawyers have the skills and experience to make sure your claims are successful.
Can I Use My Super to Buy A House To Live In?
The rules for withdrawing superannuation benefits are stringent in Australia. You have to satisfy specific conditions to access it early, and buying a house to live in is not one of them in most cases. While you can’t withdraw your super early to buy a house, under the FHSSS, you may be eligible to withdraw enough for a deposit, providing it was contributed after July 2017. In general, and unless you have self-managed super, for you to be able to use your superannuation to buy a house, you must meet a full ‘condition of release’. The usual condition is that you have reached age 65, or your retirement or preservation age (age 58 if born after 6/1962, and 59 if born after 6/1963). Your super would have to be drawn down into your bank account.
Your super generally come with insurance and TPD so you can claim superannuation insurance disability payments if you are injured at work or have an illness that prevents you from working. Talk to PK Simpson about it today.
Can I Use My Super to Buy an Investment Property?
The Federal government now allows those with self-managed superannuation to withdraw money to buy an investment property, but there are specific rules around how much you can borrow. Getting down to the nitty-gritty is very complicated, so the advice is to consult a superannuation professional about negative and positive gearing and other aspects of buying an investment property with your super. Also ask your superannuation specialist about exactly what you can and cannot do with your contributions before you make any decisions about buying a home.
At PK Simpson, we’ve successfully handled over 25,000 claims and helped thousands of people get their lives back on track. We are a personal injury law firm that charges on a ‘No Win – No Fee’ basis, and we don’t just pick and choose the cases we’re likely to win. We represent anyone who has a viable compensation claim, regardless of the size of the claim. Call us today on 1300 757 467 or email enquiries@pksimpson.com.au.