The support services team of a large financial institution has confirmed an SMSF member can use the First Home Super Saver Scheme (FHSSS) even if they have entered into a purchase contract for the property in question without first requesting a determination for the measure.
However, the Colonial First State (CFS) technical services team noted this is only the case if the event occurred after 15 September 2024.
“For FHSSS determinations made on or after 15 September 2024, a client can still apply for an FHSSS determination if they have not yet become the legal owner of their first home (or any other applicable property interests),” CFS stated.
“As legal ownership generally changes at settlement, a client will likely still be able to request an FHSSS determination if [they have] exchanged contracts for [their] first home but settlement has not yet occurred.”
CFS did note a particular timeframe is applicable to situations like this.
To this end, it said a contract to purchase a property where an FHSSS determination was made on or after 15 September 2024 would need to be entered into within 90 days prior to the day the member made a valid release request to the ATO and ending within 12 months, or a later time approved by the regulator, after the time the valid request for release was made to the ATO.
It was noted different rules and timeframes applied to FHSSS determinations made prior to 15 September 2024 and in these cases the determination requested must be made before signing a contract to purchase the home.
On a separate compliance issue, CFS confirmed the rules pertaining to making contributions intended to be used under the FHSSS measure.
“Clients do not need to notify the fund or the ATO that contributions are being made for the purpose of the [FHSSS]. Contributions made under the [FHSSS] are not a separate type of contribution. They are voluntary contributions which may be either voluntary concessional or voluntary personal non-concessional contributions,” it said.