The proposal has 2 components.

Component 1: Establish the Super Home Buyer Scheme

• Component 1 would establish the Super Home Buyer Scheme, which would allow first-home buyers to access up to 40% or $50,000 (whichever is less) of their superannuation as a contribution towards a property purchase. Participants would be required to:
  • be an owner-occupier of the property for at least 12 months
  • provide a deposit of at least 5% of the property purchase price, excluding the amount withdrawn from superannuation
  • return the withdrawn funds, including any proportional capital gains or losses, to their superannuation upon disposal of the property.
• The scheme would be accessible in conjunction with existing first-home-buyer schemes, such as the Home Guarantee Scheme and the First Home Super Saver Scheme.
• There would be no income or property price thresholds under the scheme, and couples would be assessed individually. Furthermore, any member of a couple who is a first-home buyer can access the scheme, even if their partner is not a first-home buyer.
• The scheme would be administered by the Australian Taxation Office (ATO).
  • Funds returned to superannuation upon disposal of the property would not be included in the annual superannuation contributions thresholds.
  • If the property is the participant’s main residence at the time of disposal, any capital gains would be exempt from capital gains tax (CGT). Otherwise, CGT would be assessed by the ATO and levied in accordance with current arrangements.
  • Funds not returned to superannuation would incur a penalty levied at the top marginal tax rate plus the Medicare levy.
• The scheme would commence as soon as possible but no later than 1 July 2023.

Component 2: Reduce the eligibility age for downsizer contributions into superannuation

• Component 2 would reduce the eligibility age for downsizer contributions into superannuation from 60 to 55.
  • This would allow individuals to make a one-off, post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home. This contribution would not count towards the non-concessional contributions caps.
• The proposal would commence 1 July 2022 and be administered by the ATO in accordance with current arrangements.