How much super Can I withdraw to buy a house?
The FHSS scheme can be a good way to help save a deposit to buy your first home. Using your super fund, you can contribute up to $15,000 each financial year, with the total you can withdraw across all years from 1 July 2017 capped at $30,000.
From 1 July 2022, you will be able to contribute, and access for your first home, up to $50,000 in total voluntary contributions made under the FHSSS. These contributions must be within existing contribution caps (e.g. the $27,500 per year concessional contributions cap).
So I can't just withdraw all of my super to help buy a house? No, you can't withdraw your existing balance, just the extra contributions you make under the scheme plus any interest accrued on those contributions (minus tax).
Can I take all my super as a lump sum? The short answer is yes, you can withdraw your entire super account balance as a lump sum if you like. The government's 2020 Retirement Income Review noted research by the Productivity Commission (PC) found less than 30% of super benefits were taken as lump sums.
Yes, you are allowed to use your superannuation to buy an investment property using the First Home Super Saver scheme as this is currently the only scheme purposely designed so you can use your super to buy a house.
Once you're in a position to buy your first home, you simply apply to the ATO for a FHSS determination. The determination will let you know how much you are eligible to receive from your super account – up to a maximum amount of $50,000 of the voluntary contributions you have made plus any earnings on that amount.
A house or property owned within the superannuation environment cannot be used for your own personal lifestyle needs. In short (and in general), if you have not yet reached your superannuation preservation age, you cannot use your superannuation to buy a house to live in.
The short answer to this question is no, you cannot directly purchase investment property via your super.
ASFA estimates people who want a comfortable retirement need $640,000 for a couple, and $545,000 for a single person when they leave work, assuming they also receive a partial age pension from the federal government.
Lump sum withdrawals
If you're under age 60 and withdraw a lump sum: You don't pay tax if you withdraw up to the 'low rate threshold', currently $225,000. If you withdraw an amount above the low rate threshold, you pay 17% tax (including the Medicare levy) or your marginal tax rate, whichever is lower.
Can I access my super at 55 and still work?
If you've reached your 'preservation age' of 55 or older, you might be able to access some of your super and still work. However, if you haven't, you'll need special circ*mstances to apply to dip into your retirement savings so soon.
The short answer to this question is no, you cannot directly purchase investment property via your super.
This is the money you've been saving for your entire working life, so once you hit 65 (or 60 if you're retired), yes, you can use your super to pay off your mortgage.
Under the FHSSS, first home buyers, who have made voluntary super contributions of up to $15,000 per financial year into their super, can withdraw these amounts (plus associated earnings/less tax) from their super fund to help with a deposit on their first home.
You can withdraw your super: when you turn 65 (even if you haven't retired) when you reach preservation age and retire, or. under the transition to retirement rules, while continuing to work.
