It is possible to use superannuation to buy a house in Australia, but under strict conditions and with important limitations. There are three main ways this can happen:
- First Home Super Saver Scheme (FHSSS): As a first home buyer, you can make voluntary additional contributions to your super and later withdraw those contributions (plus associated earnings) to help with a house deposit. This scheme accelerates savings but the withdrawn amount is capped.
- Self-Managed Super Fund (SMSF): If you set up an SMSF, you can use the fund's money to buy investment property, but it cannot be your primary residence. The SMSF can also borrow part of the purchase price under a limited recourse borrowing arrangement. This is complex and requires professional advice.
- Accessing Super After Preservation Age: Once you reach the preservation age (between 55 and 60 depending on birth year) and meet release conditions such as retirement or turning 65, you can withdraw your super and use it however you like, including to buy a home.
In summary, using super directly to buy your own home before retirement is generally not allowed except through the FHSSS for deposits. Investment property purchases are possible with an SMSF. Full withdrawal to buy a home is only available after retirement or reaching the relevant age.
