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The federal government has released draft legislation for its First Home Super Saver Scheme announced in this year’s budget, indicating the Australian Taxation Office (ATO) would be in charge of determining young super fund members’ eligibility to withdraw voluntary super contributions for property purchases.



According to the exposure draft legislation, released by Treasury last Friday, fund members wanting to withdraw contributions to use for a home deposit would need to apply to the ATO for a first home super saver determination, which would confirm the maximum amount they were able to withdraw from their super fund.



Members would need to be 18 or over and have not previously held an interest in a property to be eligible, and they would only be able to make a single withdrawal under the scheme, the legislation said.



A maximum of $30,000 could be withdrawn from a member’s voluntary contributions, along with any additional amounts earned by the super fund on that contribution balance.



The legislation also detailed requirements around downsizer contributions that retirees would be able to make over and above the new super caps.



According to a Treasury fact sheet, those over 65 would be able to make contributions up to the $300,000 limit within 90 days of selling their home, as long as they were then moving into “retirement communities, aged care, smaller properties, homes not close to schools or away from major employment centres, or into adult children’s homes”.



Elsewhere, Revenue and Financial Services Minister Kelly O’Dwyer also announced a series of reforms to super fund transparency, including mandating all funds to conduct annual member meetings and publish annual information on how fees were set and member funds were spent.



In addition, the new reforms would close the current loophole allowing employers to count employees’ salary sacrifice contributions towards the super guarantee, and task the prudential regulator with making it easier for members to opt out of group life insurance policies.



In a statement, O’Dwyer said the changes showed the government recognised the importance of a competitive and efficient super system, and flagged it could make further changes to the system following the next phase of the Productivity Commission report into the sector.



Financial Services Council chief executive Sally Loane welcomed the changes, but cautioned any changes to group insurance arrangements needed to be fully understood by consumers.