Treatment when FHS Account balance is transferred to into Super

The transfer of the account balance to a superannuation fund will be treated as a non-concessional contribution and will be counted against the non-concessional contribution cap.  As a non-concessional contribution, the transferred amount will also form part of the tax-free component.

Additionally, any Government payment under the First Home Saver Act for a member which is paid directly to a superannuation fund (eg where the entitlement to the payment has arisen before the account was closed and the balance transferred to a superannuation fund) will also have the same treatment in the super fund as the account transfer.

As there is a possibility that the account balance might be transferred after age 65 (and the member may not satisfy the work test for contributions which applies to post age 65 contributions), the SIS Regulations have been amended to allow the trustee to accept such transfers before the member turns age 70, whether or not the member satisfies the work test.