Can Superannuation Be Used to Buy Property in Australia?

Understanding Superannuation in Australia

Superannuation, or “super”, is a retirement savings system in Australia. It involves a portion of an employee’s earnings being placed into an investment fund, which becomes accessible upon retirement.

Can Superannuation Be Used to Buy Property?

Yes, it’s possible to use your superannuation to buy property, but there are strict rules and conditions attached.

First Home Super Saver (FHSS) Scheme

If you’re a first-home buyer, you can withdraw up to $50,000 of voluntary super contributions through the First Home Super Saver (FHSS) scheme. You can use that money to purchase a new or existing home, but not for an investment property or vacant land.

Self-Managed Super Fund (SMSF)

If you have a self-managed super fund (SMSF), you could buy an investment property with some of the money inside that fund. However, it’s important to note that the property must be an investment and not a home you plan to live in.

After Retirement

Once you’ve reached preservation age (the minimum age you’re allowed to start accessing your super) and have retired, you can take out some or all of your super to buy a property.

In Summary

While it is possible to use superannuation to buy property under certain conditions, it’s important to remember that super is intended to provide income in retirement. Therefore, it’s generally best to preserve your super until you retire.

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Please note that this article is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and seek professional advice before making any investment decision.

This information is true and correct as of 29 June 2024, prior to making any changes we recommend you read the above Government resources and seek Financial Advice prior to making any changes.