Copyright brisbanetimes
For this reason, it may be better to pop the money in the child’s bank account for them to contribute themselves. In any case, this is a great way for older generations to shore up the future for their young ones. Now, the second super opportunity you speak of, Ben, is super for housing via the First Home Super Saver scheme (FHSS). This lets people build their first home deposit in the tax advantaged super environment, up to $15,000 a year (subject to the annual contribution limits), capped at $50,000 overall. This money plus – quite generous – deemed earnings can then be withdrawn when the member is ready to buy. But the catch – very deliberately – is that they can only take out money for this purpose that has been paid in extra. It’s never a raid on retirement. No other contributions, including super guarantee ones made by their employer, can be withdrawn. Further, the member must have contributed the amount themselves. The ATO specifically says: “Ineligible contributions [include] member contributions made for you by your spouse, parent or other friends or family.”
