First Home Saver Account criteria

[Kirsti]

Hi everyone,

I have a tricky question around the First Home Saver Account. I guess it's sort of related to Tax. At least, it's related to the ATO. I was hoping somebody may have come across something similar either for the FHSA or the FHOG in the past.


So one of the criteria for withdrawing from the FHSA is that the person must move into the home within 12 months for at least 6 continuous months.

My brother is in the situation where he has met the other criteria to withdraw from his FHSA, had been searching for a first home, but a few months ago he was transferred to work in Tamworth for 18 months.
He is being paid a living away from home allowance while he is there and he comes back to Newcastle almost every weekend.
His company have indicated that the transfer is to complete a specific project and he will be brought back to Newcastle with continuous employment when it is done.

If he were to find a house he wanted to buy now, would he be able to meet the residency criteria by not renting the house out and living there most weekends or would the ATO consider his "home" for first home benefits purposes to be the unit he is renting in Tamworth, even though he gets a living away from home allowance? The ATO website states that the home must be his "main residence" so I think it's leaning toward no.

The price of entry level properties keeps on climbing around here and we're worried that the longer he waits to buy the harder it will be to afford (and someone else will get the capital growth)

Thanks!

 

[Spades]

Hi Kirsti,

I can't see a problem with your brother buying a ppor as he's getting paid a 'living away from home allowance' and comes home nearly every weekend.I see no difference between him and a Fifo worker.

Best call ATO if your unsure and unless anyone on SS has more to add?

Cheers Spades.

 

[Sean M]

As Spades says give ATO a call because his is not a usual situation. Also they might want to know if anyone else was living in the house who pay board/rent.

I am not an accountant just thought I would chip in.

 

[marg4000]

Where does he stay in Tamworth?

Is he renting a place? If he has leased a home there then that will be his home address.

Is his employer putting him up in a motel week nights and he comes home each weekend? In that case he may be able to establish his permanent address is elsewhere.
Marg

 

[Kirsti]

Thanks for the responses. Guess I'll have to talk to the ATO.

Marg, he has leased a home there, so I do think it will be hard to establish that his "main residence" is Newcastle. Thanks for your input

 

[Paul@PFI]

He is being paid a living away from home allowance while he is there and he comes back to Newcastle almost every weekend.

A per day allowance is NOT a "LAFHA" as such. The FBT changes a few years back ended those days. LAFHA was a fringe benefit issue not a daily allowance to cover being away for a day or four. A daily rate to work away from home is a travel allowance ie $120 a day. (Covers travel + accom, meals etc) He is still considered to live in the home for taxation purposes. No CGT issues either as he still resides there. Main residence is OK.