With the cost of housing rising, many people are turning to their superannuation as a way to finance a house deposit. If you’re considering using your super for a house deposit in 2022, here’s what you need to know.
Can I Use My Super for a House Deposit in 2022?
The short answer is yes, you can use your super to help fund a house deposit in 2022. There are a few rules and regulations you’ll need to adhere to, but with some careful planning, you can make it happen.
Understanding the Rules and Regulations
In order to use your super for a house deposit in 2022, you’ll need to meet certain criteria. Firstly, you must be over the age of 65 and have retired from the workforce. Secondly, you’ll need to have a minimum of $200,000 in your super account. Finally, you must have held the money in your super account for a minimum of ten years.
If you meet these criteria, you can take up to $30,000 of your super balance to put towards a house deposit in 2022. This money must be used within 12 months of accessing it, and you’ll need to provide evidence of how it was spent.
In addition to these rules and regulations, you’ll need to consider the tax implications of withdrawing money from your super. Any money you withdraw from your super will be taxed at your marginal tax rate, which could have a significant impact on your overall return.
Finally, you should consider the long-term implications of using your super for a house deposit. Taking money out of your super now could mean that you have less money in retirement, so it’s important to weigh up the pros and cons before making any decisions.
Using your super for a house deposit in 2022 is a viable option, but it’s important to understand the rules and regulations and consider the long-term implications before making any decisions. With careful planning, you can make this strategy work for you and help you get into the property market.
With the uncertainty of 2020 throwing finances for many of us out of whack, a big personal focus for many Australians is planning for a better financial position in 2021 and beyond. But what about looking further into the future, like to 2022? Specifically, many Australians of working age will be considering the idea of using the money in their Superannuation fund to help with a house deposit come 2022.
It is not a decision to make lightly, as the money in your Super fund is designed specifically to help support you in retirement. However, the government has certain measures in place to help those who may be in severe financial distress and are unable to acquire a deposit any other way.
Firstly, the ‘First Home Super Saver Scheme’ (FHSS) was designed to help those saving for their first home purchase. It allows savers to put $15,000 of their after-tax income a year into their super account and claim tax deductions on the contributions. In addition to this, the scheme improves the eligibility of loans available to the applicant.
Secondly, the government has introduced the ‘Early Access to Superannuation Scheme’ (EASS), which pre-authorises individuals who are facing severe financial hardship to withdraw up to $10,000 from their Super fund before retirement, possibly to help with a house deposit.
However, these funds should be considered as a last resort as the money taken out of Super is taxed as income, in addition to reducing the amount of money available in your Super fund and limiting your retirement savings.
In conclusion, it is possible to use your Super money towards a house deposit come 2022, but the government has set up rules to help those who are in extreme financial stress and have no other options. And remember, it should be considered as a last resort and not as an easy option to get into your dream home.