First Home Super Saver Scheme topics

FHSS and Tax

cms — Tue, 25 Feb 2020 02:28:04 GMT

Requested FHSS withdrawal June 26, 2019 - 2019 Tax Year. Received July 2019 - 2020 Tax Year. Purchased first home and Notified ATO. Also Salary Sacrificed the entire Assessable Amount back into Super Account.

Recently discovered letter in My Gov Messages from ATO stating I must include Assessable Amount on 2019 Tax Return.

Should I amend my 2019 tax to include Assessable amounts of FHSS even though I provided notifications AND repaid the amount?

Thanks for your guidance.

First Home Super Saver - Calculation and Withdrawal Amount

Shikhar — Mon, 24 Feb 2020 03:59:45 GMT

Hi!

I would like to know how much am I saving if I choose to use FHSS scheme.

Currently I am earning $1,25,000 before Tax ( including 9.5% Super) , my wife earns $1,06,000 before Tax ( including 9.5% Super).

2019 -2020 : I make a voluntary after tax contribution into my Super of $15000 between Feb and June 2020 ( I also claim a tax deduction on it via Notice of Intent) . I checked that I have not capped the total yearly limit
2019 -2020: My wife makes a voluntary after tax contribution into her Super of $15000 between Feb and June 2020 ( she also claim a tax deduction on it via Notice of Intent) . She checked that she has not capped the total yearly limit
2020-2021 : I make a voluntary after tax contribution into my Super of $15000 between July and Dec 2020 ( I also claim a tax deduction on it via Notice of Intent) . I checked that I have not capped the total yearly limit
2020 -2021: My wife makes a voluntary after tax contribution into her Super of $15000 between July and Dec 2020 ( she also claim a tax deduction on it via Notice of Intent) . She checked that she has not capped the total yearly limit
In total, between me and my wife, we have contributed $60000 into Super as voluntary contributions.

Plan to purchase first home in 2021.

Questions :

Based on this scenario can you please me understand how much I might be saving, in general, through the FHSS? Would appreciate it if you could give me a break down of the calculation including tax, associated earnings, etc..
Are my super contributions Concessional or Non-Concessional as I am claiming a tax deduction on them?
How much will I be able to withdraw from my Super ? As per my understanding I can withdraw 85% of my concessional contributions. Please correct me if i am wrong. Does blocking 15% of your super amount makes sense by the benefit we get from the FHSS scheme?
I can only buy a already build house/ Contruct a house with the FHSS amount? I can't buy a land through it?
Anything that I am missing that can increase the benefit of FHSS?

Thanks!

FHSS "as soon as practicable after purchase"

vefzdybg — Sun, 23 Feb 2020 13:13:05 GMT

I understand that for FHSS to be withdrawn appropriately I need to:

occupying or intending to occupy the property as soon as practicable after purchase
occupying or intending to occupy the property for at least six of the first 12 months from when it is practicable to occupy it.

but I'm wondering how this works if I buy a property that has an existing lease that ends later than 6 months. So for example if it's March and I buy a property that has a tenant on a pre-existing lease until December. If I plan to move in as soon as they vacate (i.e. January next year) does this still fall within the requirements?

Release of funds and contract dates

mikalex39 — Sat, 22 Feb 2020 06:19:26 GMT

Hi guys,

I recently signed a contract to place an offer for a house on the 15/2/2020 with a settlement contract to be signed in April. I met with a mortgage broker today and subsquently in consolidating all available assets, applied for release of my FHSS funds. This included both the determination and release request. I noted on applying however that the determination should have been requested before a contract is signed. My first question is which contract applies to the above, the offer or the settlement contract? If it's the former, does that mean I will be taxed because I asked for a determination 1 week after I signed an offer?

Thanks in advance

Centrelink debt vs FHSSS

Justice8511 — Fri, 21 Feb 2020 13:55:18 GMT

Once a determination is made, is that a final amount, or there can be more deductions like centrelink debt offset? If there is a payment plan in place for the centrelink debt, will the debt still be deducted from the detemination amount?

FHSS

RHiggins — Wed, 19 Feb 2020 06:00:08 GMT

Hi,

I made several volutary contributions (non-concessional) into my super account over the last few years. I have since rolled my super over to a new provider who don't have that history. Is there anyway to find out via the ATO if any of those contributions are eligibile under the FHSSS? I just want to know if I have any money that is accessible under the scheme so I can plan my savings over the next year.

I'm otherwise eligible for the FHSSS.

Best

Rebecca

FHSS release requested

ilikwbigbucks — Mon, 17 Feb 2020 22:33:46 GMT

hi community

I requested a release of FHSSS a couple of weeks ago. I received a letter from my super fund that they have deducted the amount and sent it to the ATO last week. I signed a contract and paid the deposit on my house.

What can i do with the money once it hits my banck account? Can i use it to pay my mortgage? Or will i get taxed heaps on that money? I know i red somewhere i could transfer it back as well....

TIA!!

Buying a land - When to apply for a FHSS determination

P-32 — Sun, 16 Feb 2020 21:57:48 GMT

Hi,

I am intending to buy a land before constructing a home on it to live in. You have stated in your website that “ you must not have purchased the vacant land before applying for a FHSS determination.”. I have selected the land I want to purchase and the seller has asked me to pay a holding deposit. At what point do I have to apply for a FHSS determination? Is it before paying the holding deposit, before signing the contract to buy the land or before transfer of title?

FHSS release of funds AFTER signing the contract

SP22 — Thu, 13 Feb 2020 12:01:45 GMT

Hi,

I signed a contract to purchase my first home. I was not expecting it to happen so fast but my offer was accepted on the same day. Now I am looking to release funds from my voluntary contributions into my Super via the FHSS scheme. I had not requested FHSS determinations prior to signing the contract. Does this mean I am not able to access this money at all now?

Thanks for any advice/help!

claiming a tax deduction on contributions for FHSS

BB2 — Wed, 12 Feb 2020 08:40:07 GMT

I have made a personal voluntary contribution to my super fund, with the intention of using it for a house purchase later. Instead of salary sacrificing, I made the contribution from my after tax income and sent my fund a notice of intent to claim a tax deduction. The fund deducted the concessional tax rate (15%) from my contribution, and I expected to be able to get the original income tax payment back, when I submit my tax declaration at the end of the financial year. (This was in 2019/20). Now I would like to get the money to use it for a house purchase, but the financial year isn't over. Will I still be able to claim a tax deduction when I submit my tax declaration for 2019/20, even though the contribution is no longer in my super account?
I suspect what's going to happen is roughly this, assuming I made a $1000 contribution: (I'm in the 90001-180000 bracket)
I earned $1587, my employer took out 37% tax and transferred $587 to the ATO and $1000 to me.
I transferred $1000 to my super fund and notified them that I'll claim it as a deduction.
My super fund transferred the concessional tax ($150) to the ATO and left $850 in my super account.
I now ask the ATO to release my contribution. It will now be taxed again at 7% (37% minus the 30% offset) when it's released. So I get $1000-$150-$70=$780 to use for a house.
I will then claim the $1000 contribution in my next tax return, and get the original $587 back.
Is that about right?
I know there's also the medicare levy and the earnings I made on the contirbution, and that'll probably make it all a bit more complicated, but those finer details don't concern me so much. I mostly want to know a) if that is roughly how it works, and b) that I can still claim a deduction on my original after-tax contribution at the end of the year, even though I've already withdrawn the contribution in question.

FHSS Release request not received by Super?

nirajbhatt — Tue, 11 Feb 2020 08:19:39 GMT

Hi Everyone,

Just wanted to understand the process of FHSS release. I made a release request on 8 Feb 2020. I contacted today my Super (SunSuper) and they informed me that they haven't received any request. I contacted ATO and they said they have submitted the request. There is no common number that gets generated in ATO that I can provide to Super to check? I am just stuck between ATO and Super at the moment.

It's super urgent for me as I have entered into a property purchase contract on 7 Feb 2020 and it will be canceled on 21st Feb 2020 if my finances are not sorted out.

Any help or pointer would be highly appreciated.

Just tagging ATO users to hopefully get some reply.

Thanks,

Niraj

FHSS earnings calculation

Jack_sp — Mon, 10 Feb 2020 13:42:24 GMT

Hello,

I am a little confused about what is the 'deemed rate of return' used to calculate the earnings on eligible contributions. It talks about the 90-day bank bill rate but I was under the impression it would be associated with higher rates of return based on the super funds performance?

FHSS Determination

Charlec — Fri, 07 Feb 2020 10:39:00 GMT

Hello,

I have been making salary sacrifices (before tax) into my super for the FHSS scheme.

I have been doing this over the past year, so somewhere up to 15, 000.

I am wondering if I submit a determination now, can I continue to make salary sacrifices into my super, and then get an updated determination which includes the new contributions, (of which the total would no more than 30,000 over the two years)? Or once I make the determination, is the amount of money that I've contributed fixed?

Regards,

FHSS determination is missing some voluntary concessional contributions

JG99 — Tue, 04 Feb 2020 00:17:09 GMT

Hello:

I just received my FHSS determination from the ATO and noticed that 6 months of voluntary concessional contributions (salary sacrifice) have not been taken into account. How do I fix this? Is there a ATO form to submit for this purpose? What evidenciary documents would I need to provide?

Thank you!

Once money is released

marciosilvarj — Mon, 03 Feb 2020 12:19:19 GMT

Hi,

I got the determination letter, signed a contract to buy a house, got the mortgage sorted and I asked for my FHSSS money to be released.

In detail: The house price is $260,000.

I made $5,000 deposit (during offer), as there is no simulator of full transaction and the process using FHSSS is not 100% clear the bank is going to loan $244,250.00.

So, I have accumulated 25,500 ($30,000 - 15%) in my super using FHSSS. With earnings, maximum release amount is $26,241.00. After 17% deduction it makes clean (net) $21,780.03 to be in my bank account. After all said, I am still not sure of values in regards to FHSSS release amount, neither the mortgage manager can say.

As it is the first time I buy a property, I am still not sure about how FHSSS money can be used. It is one off.

My understand up to now:

$5,000.00 - Deposit paid.

$244,250.00 - Amount to be paid by bank to seller (I think it's a check).

$21,780.03 - FHSSS amount to be released yet and I am not sure whether it is the correct amount to be released, it may be more or less.

Total amount that is expected to be available = $271,030.03.

As you can see, there is an excess of $11,030.03 (if my math is correct).

Do I have to recontribute this $11,030.03 into my super fund to avoid issues with tax or may I use this money towards any cost involved in buying this house for example fees related to this property or even renovation/improvements of this property?

I am asking this as I could not find clear information on how to use the released amount. My understanding, since it is a saving scheme to buy the first home and I bought a house all money has to be used towards this house, either for deposit, fees, improvements, closing costs. Anything related to buy the first home.

Please, clarify if possible.

Best regards,

Marcio

Incomplete tax return & FHSS

dottyfrog — Mon, 03 Feb 2020 11:36:21 GMT

Hi all,

Are there any negative consequences for not having completed my 2017/18 & 2018/19 tax returns when withdrawing my FHSS contributions in 2019/20 financial year?

Thanks,

dottyfrog

Withdrawing same year contributions were made

dottyfrog — Mon, 03 Feb 2020 10:45:07 GMT

Hi all,

Am I able to withdraw personal contributions in the same financial year they were made and still claim the deduction on my FY2020 tax return?

Cheers,

dottyfrog

FHSS Withdrawl

Badru — Mon, 03 Feb 2020 09:19:21 GMT

Hi everyone,

What is the maximum withdrawal I can make from the FHSS Scheme in one financial year?

For example:

In 2019, I contribute $15,000 (salary-sacrificed, through employer).

In 2020, I contribute $15,000 (salary-sacrificed, through employer).

Now if I am buying a property, say in 2021, can I withdraw the $30,000 at one go, or do I have a maximum limit on how much I can withdraw in one financial year (e.g. maximum I can withdraw in 2021)?

Thank you.

transfer to SMSF

Wilson888 — Tue, 04 Feb 2020 04:07:41 GMT

Hi,

When a property has been approved by the council for Boarding house, can this property be transferred to SMSF direct? Currently, the property title is under husband and wife name and has not been constructed yet. The intention to transfer to SMSF, because this property is going to be used as an income for retirement later on. The owner age about 53 and 54 years. The property is as a Principle of Resident home.

What is the implication. eg. taxes, CGT, Duties, GST, loan to construct?

I have been advised that some of them say yes I can, other say no.

FHSSS

Ants1985 — Tue, 28 Jan 2020 20:21:50 GMT

Why is my FHSSS release amount not been funded to me or back to my account

FHSS - after re-contributing

KK2 — Tue, 28 Jan 2020 10:55:38 GMT

I am looking for some guidance around what happens after a FHSS release is made, but the funds are returned to the super account within 12 months due to not being utilised to purchase a home. After the funds are re-contributed to super, is it possible to continue adding voluntary contirbutions to further increase the FHSS to the maximium limits? Additionally, could an individual re-apply later for a 2nd disbursement of the FHSS to utilise to purchase a home (given the first release was returned). In my example, the contract fell through and we do not wish to rush into purchasing a different property, so thinking we could return the funds to our super and continue saving, with a view to releasing the funds again later.

Alternatively, are extensions granted if a suitable property is unable to be identified and a contract made within 12 months of the release request?

Thanks

FHSSS release

Ants1985 — Tue, 28 Jan 2020 10:27:51 GMT

I've requested a determination on my FHSSS and had it approved. The Money was taken out of my super 4 months ago from that approval. I requested a release of my super savings to me in December yet I still don't have the money. How much longer until they release my super to me?

FHSS scheme

Minggo — Mon, 27 Jan 2020 09:32:56 GMT

Hi, I have a question about the FHSS scheme.

I bought an apartment 2 years ago and I am still paying the loan for it. I am thinking in the future to buy an actual house and I wonder if I can apply for the FHSS scheme, I'd read about it and in my understanding this scheme only for those first home buyers. But I just want to know what about for those people who'd never apply for this scheme before, can I still eligible for the FHSS scheme?

Off the plan Purchase - FHSSS Eligibility

EllisFell — Tue, 21 Jan 2020 23:47:47 GMT

Hi,

Can some please help me with understanding eligibility. I can't seem to find an answer anywhere or from anyone.

I am a first home buyer and I put a 10% deposit down for an off the plan apartment in 2017. It is expected to be completed late this year - 2020. I want to take advantage of the FHSSS for the remainder of the time by salary sacrificing and using the tax breaks in this scheme but I am unsure if I am eligible as I have already signed a contract for purchase. I have not approached a lender about a mortgage. Does my signing of the purchase contract make me ineligible?

Thanks

FHSS Taxed Non-Concessional Amount

Marco85 — Tue, 21 Jan 2020 05:38:11 GMT

Hi,

I have moved to Australia on a permanent residency visa at the end of June 2019, thus I did no lodge any Tax return for the financial year 2018/19. On the 12th of August I have put $15,000 from my savings into my superannuation fund (non-concessional contribution), with the intention of applying for the First Home Buyer super scheme later on.

Just before Christmas I have applied for the determination and release of the $15,000. However determination reported I could claim only $12,965. In addition, just yesterday I have received a notification from ATO that the actual funds released (after tax) are $10,761.

I had a chat with ATO phone support and I've been told I did something wrong, and that I had to double check with my super fund.

I did check, and the $15,000 I have initially put in my super fund have been classified as "After Tax", and not from income, thus non-concessional.

What can I do to receive the money that have been removed?

Thank you,

Marco

Do concessional contributions above $25k count towards FHSS

goteDeath — Mon, 20 Jan 2020 06:04:41 GMT

My compulsory employer super contributions are around $12k per year so I cannot salary sacrifice $15k in a year and stay within the general concessional contribution cap of $25k.

However, I have unused concessional cap amount of about $13k accrued from 2018-19 that carries forward. Is it ok to use some of this unused amount for contributions towards the FHSS scheme? For example, if I salary sacrifice $15k this year (using $2k from the unused amount from 2018-19), and do the same in 2020-21, can I withdraw $30k (plus associated earnings) under the FHSS scheme?

Hope that makes sense. I've laid out the details year by year below.

2018-19

General concessional contribution cap: $25k
Concessional contributions made
- Compulsory employer contributions: $12k
- Other: $0

2019-20

General concessional contribution cap: $25k
Total unused available cap accrued: $13k
Concessional contributions made
- Compulsory employer contributions: $12k
- Salary sacrifice contributions: $15k

2020-21

General concessional contribution cap: $25k (assuming no change)
Total unused available cap accrued: $11k
Concessional contributions made
- Compulsory employer contributions: $12k
- Salary sacrifice contributions: $15k

FHSS release timing

Bethk12 — Sat, 18 Jan 2020 22:22:32 GMT

Hello,
I have been contributing to the FHSS via salary sacrifice into my super account.
My partner has already released his funds. We have suddenly stumbled upon a house that we love, and want to make an offer. Does my FHSS release have to be used for the initial deposit? Or can I apply it at the 30 day settlement date if our offer is accepted?
Also, my employer contributes my super monthly, so some of my contributions haven't been added yet. Do they just have to stay in my super account now?

FHSS marginal rate determination/interest calculation/interest over or under super investments?

mesana — Thu, 16 Jan 2020 02:38:31 GMT

so i have 3 questions

1. How is marginal tax rate determined? For example, if 2018-2019 FY i make 80k and then 2019-2020 i make 120k but ask for a determination before the end of 19/20 FY how is my rate determined? If i am taxed at the 18/19 rate will i be penalised in the 19/20 assessment because it is a lower rate because of lower earnings the year before determination is asked?

I saw in a previous question a suggestion that marginal tax rate is based on an ATO assessment from the previous year but plus the money in the FHSS? which if you have the 30k can easily push you up a bracket? Just trying to work out when we have enough money across various places (my money has been put into super through pre tax voluntary deductions within the 15k per year limit and under 30k max)

2. how is deemed earnings worked out? i saw 2% plus bank bills rate (currently 1.023) in a few places so presumably 3.023% if i asked for a determination today. but how is the interest calculated? just on the amount you withdraw as a straight calculation (ie 30k max amount 34.5% marginal rate incl ML, Is it calculated before (((30k - 15%) + deem rate) -4.5%) or after (((30k - 15%) -4.5%) + deem rate) the tax comes out on exit?

Or is it some sort of compound interest style calculation so it increases over time as you have more in there?

3. What happens if my super returns are above or below this amount? If my super fund investments are currently returning 10% what happens to the extra money made? does it just stay in my super forever until i retire earning more returns etc? If my super fund is having a bad year with say -2% returns, what happens to deemed earnings then? does it dip into my other super to make up to the 3.02% or do i lose money on money put in for FHSS?

and i guess what happens if they close this scheme? there no specific tag for the money for FHSS by the super fund. Will people get screwed if in 5 years they decide not to do this any more and the money is already in super?

FHSS Timing

Ry_94 — Mon, 13 Jan 2020 09:17:15 GMT

Hi all,

Just need some clarification on when things need to happen for the FHSS to be valid.

Specifically I wanted to know which contract is referred to on the website when it's stated:

You must apply for and receive a FHSS determination from us before signing a contract for your first home or applying for release of your FHSS amounts

Sign a contract to purchase or construct your home – you must notify us within 28 days that you have signed the contract

When building there's several contracts, the PWC (Preliminary Works Contract), HIA contract (Building Contract) and the land contract.

Which do I need to have a determination before signing and then notifying within 28 days?

Regards.

FHSS- Determination

rufaro_01 — Mon, 13 Jan 2020 04:35:45 GMT

Hi there.

I am yet to do one but I was just wondering how long it typically takes to received a determination?

Regards

Rufaro

FHSS Determination

Sharlie — Sat, 11 Jan 2020 22:42:11 GMT

Hi there,

I would be grateful anyone who could shed some light on a determination I've just received. I'm not sure what, if anything, I've done wrong.

I've been contributing towards the FHSS over the last two financial years.

In the 2018-2019 FY I contributed $11,198 in total which is broken down as follows:

- $2,334 in voluntary after tax contributions; and

- $8,864 in salary sacrifice contributions.

In the 2019-2020 FY I have contributed $13,394 in total. All of these contributions were made by salary sacrifice.

So over the two financial years there have been $24,592 of contributions made in total.

When I requested the determination I checked that each of my fortnightly contributions were recorded and they were. Nothing was missing. They totalled the same amount listed above.

As I claimed a deduction for the $2,334 in my 2018-2019 FY tax return, I also recorded this. The deduction I recorded was the total amount of $2,334.

When I received my determination back it only listed $20,903 as my concessional contributions. Shouldn't it be $24,592?

I thought maybe this is because of the withholding tax but the withholding tax listed on the determination is $3,633 which doesn't quite account for the difference... Could someone shed some light on this? I just want to understand so that I don't miss any eligible amounts when I finally go for the release.

Thank you so much in advance.

Building a home

Joly — Thu, 09 Jan 2020 04:19:08 GMT

Hi,
I want to build a tiny house on my fathers property using my first home super saver money. Is there anything in the criteria that would prevent me doing so? My father would be allowing my to do so as I am in financial hardship.

Would be great to get some direction on this,

Thank you.

7 weeks and counting for FHSS

RissyM — Wed, 08 Jan 2020 23:44:37 GMT

I applied for FHSS on 20/11/19. The funds were released from my Super account on 29/12/19. I am yet to receive this money ....Despite MANY phone calls to ATO Super. My partner and I are getting fed up with this process as we have missed out on homes we would liked to have signed contracts on. Its been well outside the estimated 15-25 business day processing time. Sick of wasting my time on the phone to ATO staff without getting any answers or resolutions. What else can I do?

Using FHSS to Pay for Other Commonwealth Debts

SJessop — Sun, 05 Jan 2020 22:23:55 GMT

Hi,

I cannot find anywhere on the ATO's website clarification on what i can spend the FHSS on once requested. I am currently looking at buying a place but at the same time I have a tax bill on the way. I have enough deposit to purchase my house without the FHSS but am i able to request the release and pay my tax bill with this money.

If anyone has had any experience similar to this or can direct me to somewhere to find information on spending the FHSS please let me know.

Sam

FHSSS worthwhile?

brycetaylor — Sun, 05 Jan 2020 10:24:40 GMT

So as is stated on the FHSS scheme site, marginal tax on over $37,000 is 34.5% including Medicare Levy. However when contributing as a voluntary pre-tax Super contribution tax is only 15%.

However only 85% of voluntary contributions (that’s pre-tax) are allowed to be withdrawn via the FHSS scheme and an additional 2% Medicare Levy will be taxed upon withdrawal of those funds.

So can somebody help me understand how this scheme is worthwhile if I’m only allowed to withdraw 85% of my total voluntary contributions which are also taxed an additional 15% through my Super as well as the 2% Medicare Levy.

Am I wrong in seeing a very small margin of tax saving here? If I’m seeing this all wrong I would love to be corrected!
Thanks!

Which month are contributions allocated to and how to get the full FHSS release amount.

mhmly — Sun, 05 Jan 2020 05:10:09 GMT

Hi all,

Just had a quick question in regards which month concessional contributions are allocated to. When going onto the MyGov to look at my Super contributions I see that there is a Period Date (pay period for the contribution) and a Receipt Date (when the contribution enters the funds bank). If I was to contribute $5,000 in the June pay period (June 1 - 30), will this be allocated to the 2019-20 FY as per Period Date or the 2020-21 FY, as per the Receipt Date, as the contribution would only reach the funds bank in July.

Also I know that there is a maximum $15,000 that you can apply to get released under the FHSS, and that you can only release 85% of concessional (pre-tax) amounts as 15% gets taxed. Does that mean that in order to get the full $15,000 you will need to contribute $17,647?

FHSSS - Tax

jaeeeb — Sun, 05 Jan 2020 03:29:22 GMT

Hi there,

My partner and I are currently salaray sacrificing into our super to help save for our house. I was under the assumption that once this is withdrawn we will then be taxed on our contributions.

On looking into our super accounts I can see that we are already being taxed our contributions at 15%.

Will this then be taxed again when withdrawing our balance resulting in being taxed more than we would have if we were to save post salary into a high interest account thus making this scheme pointless or am I missing something.

Help would be appreciated.

Thanks

A Few FHSS Questions

Ashman — Fri, 03 Jan 2020 00:51:51 GMT

Hello, I have a couple of questions regarding the FHSS.

According to the website when you apply to release the FHSS funds they will first be used to offset any outstanding debts you have with the Commonwealth. I’m assuming this means that if you have an outstanding debt from a previous financial year it will be deducted from the FHSS release, is this correct or is the full balance of the HECS-HELP paid off from the FHSS funds first and the remainder released? Essentially, if I have a $25k HECS-HELP balance and request the FHSS release it won’t automatically pay out the $25k in full and only leave me with a $5k release will it?
When claiming a deduction for a voluntary non-concessional contribution (to convert it into a concessional contribution) your taxable income is reduced by the value of the contribution, does this mean that if you were at the lower end of a tax bracket the contribution could potentially lower you down to the tax bracket below? EG: you’re on a $105K inc super package ($95k after super) putting you in the $37% tax bracket, and you contributed $10k you would lower your taxable earnings to $85k and thus drop down to the 32.5% tax bracket?
Regarding the $15k/year limit on FHSS contributions, is this $15k limit before the 15% concessional tax is applied or after? IE: Can I only contribute a maximum of $15k/year from my savings which is then taxed at 15% giving me a balance sitting in super of $12,750 or can I contribute $17,647 from my savings giving a balance of $15k sitting in super? I’m assuming it’s the former, meaning that if you were to contribute the maximum allowable $30k to the FHSS over 2 years you would actually only have $25,500 + any earnings available to withdraw, correct?
Just to confirm that the full blance of the FHSS is available to withdraw within the same financial year? There was a bit of confusion on one of the (non ATO) discussion boards I was reading that indicated that you could only withdraw $15K + associated earnings per financial year.

ATO Shutdown & Timelines for Notifications

KTB — Sun, 29 Dec 2019 02:10:36 GMT

Hi ATO Community,

I just purchased my first home this month, and withdrew voluntary contribution funds from my Super using the FHSS Scheme.

1. The value on my release was different to the amount deposited. I'm not sure why and I can't find any notice from ATO or my Super provider to explain, and nothing on the ATO website to explain. Any ideas?

Release	$11,029.14
Actual	$10,037.14
Difference ($)	$992.00
Difference (%)	8.99%

2. FHSS required me to notify the ATO with signed contract, but through December they've had a number of technical issues (outage through December 13, and complete shut-down of customer service and portal from 24th December. What can I do to provide the signed contract of sale to meet the required deadline while the ATO is closed / unable to accept the documents?

Cheers for any answers.

KTB

FHSSS Contribution Limit

mwilsonw — Thu, 26 Dec 2019 02:56:43 GMT

Hello,

I was just wanting a bit of further clarification over the limit on FHSSS withdrawals. In particular, if the $30,000 cap is a net or gross figure of tax. Hopefully the example below helps:

$17,647 ($15,000 / 0.85) voluntary concessional contributions made in 18/19
$17,647 ($15,000 / 0.85) voluntary concessional contributions made in 19/20
$5,000 of associated earnings across both years

When I apply for a release of my contributions, I can receive 85% of my concessional contributions along with associated earnings. Therefore, assuming that the $15,000 limit is post-tax amount, my withdrawals will be:

$15,000 ($17,647 * 0.85) for the year 18/19
$15,000 ($17,647 * 0.85) for the year 19/20
$5,000 across both years

Total FHSSS release of $35,000.

Can you confirm that this understanding is correct?

Alternatively, the below senario shows the impact that a $15,000 pre-tax limit would have:

$12,750 ($15,000 * 0.85) for the year 18/19 - $2,647 ($17,647 - $15,000) foregone as it has exceeded the $15,000 pre-tax limit
$12,750 ($15,000 * 0.85) for the year 19/20 - $2,647 ($17,647 - $15,000) foregone as it has exceeded the $15,000 pre-tax limit
$5,000 across both years

Total FHSSS release of $30,500.

Hopefully the above helps. Thanks!

Purchase house to be demolished immediately to build a new house

Ryan_Erin — Tue, 24 Dec 2019 03:54:16 GMT

Hello

I have been trying to get information on my situation regarding application for the FHSS.

I will present two scenarios below, and am chasing the timing of events associated with them as I understand timing and process to be very important for release of Super in regards to the FHSS.

Assumptions are that I qualify and am eligible, of course .

Also, I have already made a successful determination.

Scenario 1.

I propose to buy a property in disrepair and demolish almost immediately and sign a building contract with a reputable builder. The process as I understand it is :

Seek determination (done)
Sign offer and acceptance for property
Within 14 days, Request Release of Super
Sign a Building contract within 12 months
Demolish and construct
Occupy new home as soon as practicable and live in it for at least 6 of the first 12 months.

CAN I PLEASE HAVE CONFIRMATION OF THE STEPS ABOVE OR CORRECTIONS AS NECESSARY INCLUDING ANY OTHER STEPS TO BE TAKEN WITH ASSOCIATED TIMINGS.

Scenario 2.

If I buy the above property AFTER owner has demolished (now vacant land) and sign a building contract with a reputable builder. The process as I understand it is :

Seek determination (done)
Sign offer and acceptance for property (now VACANT LAND)
Within 14 days, Request Release of Super
Sign a Building contract within 12 months
Occupy new home as soon as practicable and live in it for at least 6 of the first 12 months.

CAN I PLEASE HAVE CONFIRMATION OF THE STEPS ABOVE OR CORRECTIONS AS NECESSARY INCLUDING ANY OTHER STEPS TO BE TAKEN WITH ASSOCIATED TIMINGS.

FHSS Determination

Codycodes — Thu, 12 Dec 2019 06:19:55 GMT

I just requested for a release on myGov for the FHSS on 12/12/2019. How long will it take until i receive the determination so that i can sign my contract?

Kind regards,

Cody

Notify ATO signed contract date before request release date not allowed

aileen03 — Wed, 11 Dec 2019 10:15:09 GMT

Hi,

I requested a release of my First Home Super Save Scheme yesterday (9th December2019), having asked for a determination on the 6th of December 2019 and few days before. I successfully won at auction over the weekend and so, I signed the contract of sale on 7th December 2019.

This all seems aligned with the new changes to the FHSS law:

"You must apply for and receive a FHSS determination from us before signing a contract for your first home or applying for the release of your FHSS amounts.

You can sign a contract to purchase or construct your home either:

from the date you make a valid request to release your FHSS amounts
up to 14 days before you make a valid request to release your FHSS amounts.

You no longer have to wait until the first FHSS amount is released to you to sign a contract to purchase or construct your home."

However, now that I want to notify ATO online that I have signed the contract - it says that 'You cannot select the contract date before the request release date" which from my understanding is actually allowed?

Can a team member please advice what I should do or how to rectify this issue?

FHSS clarification

Ally1 — Fri, 06 Dec 2019 02:31:21 GMT

Hi there,

I have been contributing to the FHSS for a little over a year and have requested my determination. Could you please kindly look at my calculations? I have provided calculations below (generic):

I contributed $21,000 directly from my pay that was taxed at 15% once it hit my super. After the tax, I have $17,850 of super contributions.

When I request to release this money, my estimated maximum release amount is $17,850 plus any associated earnings, minus a $3000 withholding tax which has been estimated (which I believe is actually calculated when I request a release? Or is it actually taxed $3000 and I get the difference back in my tax return?)

Basically, when I withdraw this money into my bank account, my income for the year becomes $92,000 which pushes me into the 37% tax bracket. Had I just let the money go into my account from my employer, I would have been taxed at 32.5% ($14,175).

As I have chosen to enter this scheme, I am firstly taxed at 15% from my superannuation account, then taxed the witholding tax which will be 9% (37%+2% medicare levy minus 30% offset). Therefore my estimated release would be $17,850 minus 9% ($1,606.5) of this amount which is $16,243.5 plus associated earnings. Had I saved $2000 less or request to release $15,850, estimated release would be $15,850 minus 4.5% (32.5%+2% medicare levy minus 30% offset) which equals to $713.25 tax which makes the release amount $15,136.75.

Participating in this scheme also increases my gross income, which makes me ineligable for the ACT government first home owners concession.Upon recieving the determination, I am at a loss as to how this scheme has benefited me. If my calculations are correct, I have saved $2,068.5 ($16,243.5 minus $14,175) but have lost the opportunity to be eligible for the first home owners grant which is valued at $14,000.

Thank you for your help in confirming my calculations.

FHSS release

RissyM — Wed, 04 Dec 2019 07:23:47 GMT

I applied for release on 20/11/19. I see the amount was released by my super fund on 29/11/19.
Is is really likely to take the full estimated time frame of 25 business days to be released to me? I phoned today to be advised that I wouldn't receive the amount until 03/01/2020 due to the christmas closure between 25/12/19 and 02/01/20. Unfortunately for me 25 business days falls on 25/12. Is it possible that it will be released prior to 25 days or just highly unlikely?
There are no govt. debts to be deducted

FHSS setup

taxxer — Tue, 03 Dec 2019 21:55:36 GMT

Hi all,

Just a few quick questions on FHSS.

1) I have checked with my super fund and they do support it but the ATO site does not really explain how you get started. Do I simply just put in concessional contributions and I can claim them at a later date? Is there some form I need to fill in so the ATO knows that these voluntary payments are going towards FHSS or is this done dunring the determination stage? Basically, if I voluntary pay (pre-tax) is this covered under the FHSS?
2) Rate of tax is at 15%. Does this mean to get the maximum of $15,000 put in per financial year I would have to actually volunarily pay $17250? ($15,000 + 15% tax = $17250?). If so it would mean my monthly payments to my super fund would be $1437.50 rather than $1250.

Thanks in advance.

FHSSS - Concessional Contribution after Determination received but before Release

EthanWang — Thu, 28 Nov 2019 10:52:11 GMT

Hi Team,

In order to utilise FHSS Scheme I have to apply an FHSS determination first before signing the contract. However, my recent concessional contribution was made already as per my salary statement but it will take 6 business days to arrive on the super account. I will need to sign the contract within the next 3 business days so I have to apply the FHSS determination now. The determination won't have the last concessional contribution included but after I signed the contract and request the release it will be available on my super account for release.

I want to know if the last concessional contribution will be added in the final FHSS release amount even though it's not included in the determination letter?

Thanks

Ethan

Accidental error when requesting fhss release

clee1501 — Thu, 28 Nov 2019 06:22:41 GMT

Hi,
I recently applied for a fhss determination and accidentally selected "non concessional" instead of "concessional". This has the effect of increasing my maximum release amount more than it should have been if I had filled it out correctly (it should have been concessional). Not realising this, I applied for release of fhss funds based on this erroneous determination.

What can I do to amend or fix this release request so that the maximum release amount is calculated on the basis of my concessional contributions?

FHSS

Tasha — Thu, 28 Nov 2019 02:35:38 GMT

Hello i applied for release of my super through the FHSS almost 2 months ago and it still says it pending even though it has been taken out of my my super account. What is happening please?

Moving overseas after FHSS

Phuang — Wed, 27 Nov 2019 10:55:28 GMT

Hello,
I have notified the ATO and withdrawn my FHSS for a deposit to buy a place with my partner with the intention to live in it. After we signed the contract and put in a 10% deposit, we were invited by our workplace to work in our overseas office for 2 years.
We would like to take this opportunity, however, I am unsure what happens to my FHSS after this, since I will be moving out of it within the first 6 months. However, we always had the intention to move in as our primary residence (and will do so for ~3 months before relocating for work) so I was wondering what we as re expected to do in this situation? For instance, can recontributing be waived if we prove we received this offer after we signed the purchase contract?

Thanks.

Plan & timeframes

Leon99 — Mon, 25 Nov 2019 03:00:15 GMT

I've just recently learnt about this scheme and am composing a plan on how to make use of it. I'm hoping to buy my first home ASAP, so also wondering about how much time the whole thing will take. Here's my plan so far:

1. BPAY $15K to my super (2-3 working days)

2. Send my super fund a notice of my intention to claim the contribution as tax-deductible (processing times 5-7 working days)

3. Request determination from ATO (not sure how long it may take to process?)

4. Sign the purchase contract

5. Request ATO to release my funds (not sure how long it will take them to process till I got the money?)

6. Claim my contribution as part of the tax return 19-20.

Did I miss anything? Any statistics on the timeframes? Any feedback appreciated.

FHSS

abi1 — Sun, 24 Nov 2019 23:25:48 GMT

Hi,

How many times can you ask for FHSS determination?

My employer pays my super one month late so my last months super is still not in my account yet, can I ask for determination now and another one again next month? How long does it take for a determination?

I've started my loan application.

Thanks

First Home Buyer Super Save Scheme - Determination

Olbert — Fri, 22 Nov 2019 03:30:50 GMT

I'm using the FHSS to for my first house. I've found a house and am just about ready to sign the contract, however, my lawyer just told me that I have to have an approval letter from the ATO for the FHSS prior to signing the contract. My reading of the website is that I only have to have a 'determination' not approval prior to signing the contract.

I believe I have done the determination through the myGov website but it's hard to know for sure. I've also actually applied for release of the money and I have a form showing this. But I can't find anything on myGov that confirms that a determination has been made - it just shows me that I've applied for the release of the funds.

I am fairly certain my lawyer is incorrect and that I am able to sign the contract now. Do I have to wait for the release of funds?

FHSS

RissyM — Thu, 21 Nov 2019 10:16:28 GMT

Can a bankrupt apply for FHSS?
I can't find anything to state bankrupts are/are not elegible.

Gettings my FHSS Money

Neuroscience — Wed, 20 Nov 2019 12:59:55 GMT

I signed the contract to purchase my first home on the 4/11/19. I applied to request determination of my FHSS funds on the 13/11/19 (which was delayed by many days because the online mygov system is so clunky and I couldn't complete my request). It now seems that I cannot request release of FHSS funds for this house, becuase I applied to request determination after signing the contract. So now on the Mygov portal, I can't enter a date for signing the contract after clicking on "notify us" to notify the ATO to "avoid paying FHSS tax". I don't care about tax anymore, I have a substantial amount of money being held in super by the ATO. I don't care about how much its taxed, I just want the release of as much as possible as soon as possible, so I can pay for my house. Settlement is due on the 4/12/19, and the ATO is screwing me over. I just want to know how I can get my money which I saved with the intention of purchasing my first propert?

FHSSS Information

jlee1019 — Wed, 20 Nov 2019 02:57:05 GMT

Hi,

I am looking into saving for a home using the First Home Super Saver Scheme. I meet all the criteria but I just have a couple of questions:

1. Setting up a salary sacrifice through my employer means that they will deposit the salary sacrifice quarterly. What happens if I buy a property midway through a quarter and the money hasn't been deposited yet? Presumably I won't be able to include this in my withdrawal. Will I be able to stop it from being deposited in my super so I can still access it to purchase the property. Will my employer just be able to deposit it back to me and I pay the missed tax?

2. Can I deposit the interest earned on savings accounts as a pre-tax deposit? If so how would this work?

3. How does it work withdrawing the money if you are bidding at an auction? Would I have to request the money before the bidding at the auction (and potentially signing the contract)? What happens if I make the request and then I am unsuccessful at auction?

Thanks for all your help.

Cheers,

Jacqui

FHSS Follow Up

Smith2019 — Mon, 18 Nov 2019 22:14:50 GMT

Hi, I submitted a claim to release funds under FHSS about two weeks ago, and this morning I have been attempting to call to ask for a follow up on the progress of the release. How can I speak with someone about this, please?

FHSSSS

LP84 — Sun, 10 Nov 2019 21:16:15 GMT

Hi,

In about six weeks I will be ready to see a mortgage broker and begin looking to buy a home. Should I request a FHSSS determination now in order to show the mortgage broker/lenders proof that I have money under the FHSSS that will go towards my deposit?

And if I request a determination now, can I request another one closer to the time when I'm ready to actually make an offer on a house and withdraw the money I have contributed?

Thanks very much.

FHSS

Natalie16 — Wed, 06 Nov 2019 02:35:39 GMT

Hi guys
I’m intending on purchasing some land soon, but I am not intending to build on it for 2 years. Can I use the my FHSS when I intend to build?
Thanks

First Home Super Saver

LSM2019 — Mon, 04 Nov 2019 02:33:59 GMT

I have requested and received a determination of my FHSS. I am looking to potentially purchase a property at auction in the next month. As I have not met my $30k quota yet, I won't want to request a release of my FHSS until I find a property I want to buy, or until I meet my $30k quota. Most of the properties I am looking at are sale by auction, so will not know whether I will be successful or not until on the day of auction. My question is, should I request a release of my FHSS, as I will need to pay a deposit at auction, if my parents loan me the money to pay the deposit can I use this FHSS to repay them for my first home deposit? It will be for my first home, I will sign a contract and be able to provide this to the ATO. It's just if I don't get the funds in time to pay the 10% up front at auction, will I be allowed to use the money to pay back my parents loan for the house deposit?

FHSS Timing

taxagent13 — Fri, 01 Nov 2019 04:27:59 GMT

Hi,

I have some questions regarding the FHSS scheme.

1. One of the things mentioned on the ATO website is that “you must apply for and receive a FHSS determination from us before signing a contract for your first home...”. Does this mean that a client who signs a contract to buy a house before receiving their FHSS determination would not be able to withdraw funds from their super?

2. If a client did receive a FHSS determination based on non-concessional contributions and subsequently signed a contract to buy a house, would the client then be able to send a “Notice of intent to claim a tax deduction” form to their super fund and change the FHSS determination to reflect this, now showing concessional contributions? Or must all of this occur before the contract of sale is signed?

3. Must all contributions be received by the super fund before a FHSS determination is made? Eg. a client applies for a FHSS determination having contributed $13,000 to date. They are intending to contribute a further $2,000 on payday next week so they apply for the FHSS determination based on the full $15,000. The determination is received and the next day the client signs a contract to buy a house. They have still only contributed $13,000 at the time of signing the contract. As long as the final $2,000 is contributed before applying for release, will the full $15,000 be released? Or must all contributions be made before applying for the FHSS determination and before signing a contract of sale?

Thanks in advance.

First Home Super Saver

andrew4 — Thu, 31 Oct 2019 05:50:38 GMT

I have secured circa 20,000 from the FHSS at the end of last year. However, in my latest tax return I am now required to pay an additional 7,500$ in tax as it pushes my marginal tax rate into 37.5% (my taxable income was around 90,000$ prior to the FHSS). This is surely against the intent of the FHSS, which is intended to help first home buyers with a deposit rather than a tax grabbing exersize by the government. Please can you confirm whether these unintended consequences were considered in the development of the FHSS?

Secondly, due to personal circumstances, I may not be able to proceed with buying a house. In this situation I would have to recontribute the money to my super (having been taxed 7,500$ with no rebate), or keep the money and get taxed a further flat rate of 20% if i decided to keep the money. is seems like either approach will leave me considerably worse off. Please can you confirm whether i am understanding the FHSS correctly?

Kiwisaver/ FHSS

Mrak1 — Wed, 30 Oct 2019 21:22:40 GMT

Hi
In looking to transfer my KiwiSaver to a complying Super Fund.
My question has two parts.
1. Will I be able to utilise of that money towards a deposit for a first home?

2. If yes, what amount will I able to use and how soon? In other words, will I be able to use the max amount of $30000 or am I limited to a $15000 per financial year limit?
What I would like to do is make the transfer ( to Super) withdraw what I can as soon as I can towards a deposit for a home.

Please advise.

HECS/HELP and concessional super contributions

lw178 — Tue, 29 Oct 2019 11:34:46 GMT

Hi community,

I'm after some info about making before-tax contributions to my super (taking advantage of the FHSSS) whilst still paying off a HELP loan. I've already read the very informative thread about whether a HELP loan is considered a Commonwealth Debt (which it isn't).

Am I correct in assuming that if I make $10,000 in salary sacrifice concessional contributions over a year, the amount of money taken out of my fortnightly wage to pay off my HELP loan will also decrease (as a function of a lower taxable income)? If this is correct, will this result in my having to make up the difference in my HELP repayments at the end of the financial year?

For example, if my HELP repayments go down by $30/fortnight as I have reduced my taxable income through making concessional contributions, after one year will I have to pay back $780 ($30 x 26 fortnights) in underpaid HELP repayments?

Thanks for helping out.

First Home buyers scheme

Coco4613 — Thu, 24 Oct 2019 22:14:14 GMT

Hi there, If I am contributing to my super and am registered for the first home buyers scheme how often will the amount available be updated. TIA

FHSSS - payment from SMSF to ATO before receiving payment

SMSFhelp — Wed, 23 Oct 2019 08:31:54 GMT

I have a request release in process for my FHSSS amount. However as I have a self managed super fund I am the director that will need to make the transfer to the ATO on behalf of my super fund.

Where do I get the account details from the ATO for the transfer?

FHSS and HECS

Evelazic — Wed, 23 Oct 2019 00:22:33 GMT

I have a few questions to ensure I'm informed when beginning to utilise the FHSSS.

I have 2 jobs and I've claimed the threshold on my highest paying job. I have also declared my HELP/HECS debt to both my employers.

Due to having 2 jobs, if I earn over the tax threshold on my higher-earning job and don't make any changes to my tax repayments, will I get a tax bill at the EOFY at tax time?

Also, due to having 2 jobs I could potentially earn over the threshold to repay my study debts. Because I have declared my debts to both my employers does this mean that if I have to make any repayments it will be taken out at tax time or do I need to monitor my income and make HECS contributions do avoid a tax bill?

I'm just a bit confused around how using the FHSSS will impact my study repayments and how to monitor this for tax purposes.

FHSSS and HELP Repayment

Aussiedoc — Sat, 19 Oct 2019 00:13:42 GMT

Hi,

Will contributing to the FHSS scheme affect my HELP Repayments? Ive heard that making a vol contribution to the FHSS will reduce my required repayments?

Thanks!

FHSS in combination with 'Carry-forward' concessional cap utilisation

ameyamardolkar — Fri, 18 Oct 2019 01:20:49 GMT

This is a bit tricky question regarding the combination of FHSS and carry-forward concession and let me try to phrase it the best way I could.

I am sure you must have heard about ATO’s new legislation regarding the ‘Carry-forward’ concessional contribution wherein I can utilise any unused portion of concessional cap from previous year. I have almost 15k of unused concessional cap for the FY 2018-2019 and I want to use up that part. So I will be making a personal contribution of 30K sometime this year, 15k towards last year's unutilised cap and the rest towards topping this years cap.

Now! FHSS suggests one can withdraw upto 15k of additional contribution each Financial year, upto 30K in total. But say I contribute today 30k of personal contribution as of today (15k of it towards the unused concessional cap for the last year as part of carry-forward option and another 15k for this current year to utilise the entire concessional cap), will FHSS consider as 15k contribution for 2 separate financial years or will it consider it 30K in one Financial year as the deposit happened at one go. If they consider that since the entire 30k was deposited in this one finacial year (ignoring the fact that they were towards last years unused cap) I will be able to utilise only the 15k part nad have to let go the rest towards to retirement :-( . Can somebody clarify this?

Contribution cap amount

PiyaBhatt — Thu, 17 Oct 2019 21:28:15 GMT

Hi there, I would appreciate a response for the below.

1. When and how is employer contribution accounted for under the $250000 cap for concessional contribution. E.g. if my employer has not contributed an amount for a financial year, is it counted under the cap for contribution for the same financial year or the year the money goes into my super?

2. Is the above accounting of cap on concessional contribution same under the FHSS?

Kind regards
Piya

FHSS: When is the release amount be credited to my account

femme — Tue, 15 Oct 2019 03:12:34 GMT

I have clicked "Notify ATO" in MyGov last 19/09/19 as I have signed a build contract on this date. Almost a month now, when should I expect for the amount to be credited?

Going to MyGov:

Request Release Date: 16/09/2019

Contract Date: 19/09/2019

Tax on FHSS withdrawal

BrigidRose — Mon, 14 Oct 2019 00:02:13 GMT

Hello,

I have recently applied for the release of m super through the FHSS and asked to nominate my tax amount of 9%.

Will this amount be applied when the money is withdrawn or will it be tax I pay at the end of the financial year as part of my tax return?

Thank you,

Notification error on MyGov Portal

BrigidRose — Sun, 13 Oct 2019 23:58:50 GMT

Hello,

When I go to 'Notify' the ATO of my signing of the contract of sale through the MyGov portal I receive the following notification 'Contract date: You cannot have contract date before request release date'.

But on the FHSS website it says:

'If you've already received a determination and signed your contract to purchase or construct your home, you must make a valid release request within 14 days of entering into that contract. You can also sign your contract after you make a valid release request.'

Can you please let me know why this bug is occurring and let me know how i can make this notification?

Thanks,

Contribution to First Home Super Saver Scheme

PiyaBhatt — Sun, 13 Oct 2019 20:33:55 GMT

Hi there, Can the unused cap for contribution to the FHSSS be rolled over like the General concessional super contribution? Say, I have not yet contributed to the scheme. Can I for this year contribute $30000 and withdraw it next year.

Because that still meets my concessional contribution limit of $25000 per year. I understand that from 1 July 2018, the unused concessional contribution to super can be rolled over. Is it the same for contribution under the FHSSS in terms of rollover of unused cap?
Is so, can you provide the link to the primary source of this information?

FHSS when claiming deduction

DG — Sun, 13 Oct 2019 03:58:04 GMT

Hi, I am a first home buyer and have $15k savings and earn $85k/year.

After reading information on FHSS, I plan to do the following:
1. Salary sacrifice a weekly amount so that my pre-tax contributions for the FYE 2020 are $15k (total super contributions will also be under the $25k cap).
2. On 1 July 2020 contribute my $15k cash savings (note I am referring to the after-tax savings I already have, which I will invest in the meantime) into my super (total super contributions will also be under the $25k cap for this year), file a Notice of Intent to claim a tax deduction, then claim this as a tax deduction on my tax return for FYE 2021 ("the after tax contribution")

Questions:
1. I am correct that the after-tax contribution of $15,000 will be treated as follows:
A) taxed at 15% within my fund
B) allowable to be withdrawn under the FHSS assuming I otherwise meet the criteria (I am of course referring to the 85% left after the tax plus interest)
c) taxed at my marginal rate less 30% in the year I withdraw it under FHSS
d) claimed as a tax deduction on my tax return for FYE 2021, so my taxable for that year is reduced by $15k

2. Also, if the above is correct, is it also correct that my tax return for FYE 2021 should show my gross income (assume still $85k), a deduction of $15k (therefore taxable income of $70k taxed ordinarily), PLUS the amount of the FHSS withdrawal assuming I do it that year which will be taxed at my marginal rate less 30%?

Thank you in advance for your response.

I also wish to note it is a tremendous shame that the FHSS is so complex that ordinary Australians would not have a chance of understanding it. I have spent about 6 hours researching this to get to my current point of understanding, which I hope is on track.

FHSS RELEASE

Ljupcho — Sat, 12 Oct 2019 01:02:33 GMT

Hello.
I've applied for a FHSS release online. The determination is positive, but it says that I'm eligible for a lower ammount than I've asked for a release. The status of release is pending, still the letter advised me to apply through MYGOV if I agree with the outcome.
My questiion is: Should I logde a release request again or it's done automatically with the ammount determined from ATO?

FHSS determination: standard review processes

Steveb1 — Wed, 09 Oct 2019 05:56:41 GMT

I transferred funds from Kiwisaver and the FHSS determination doesn't take into account that the preserved amount is made up of 5 1/2 years of contributions. How and where do I find the standard review processes for determinations to resolve the issue?

FHSSS

Delta13 — Tue, 08 Oct 2019 21:33:24 GMT

Can you access funds deposited prior to when your Financial Hardship Application was authorised? i.e. 2017-2018 if authorised 2018-2019?

FHSSS if one member of marriage owns property

MF — Fri, 11 Oct 2019 04:04:39 GMT

Hi,

I would like to confirm if my husband owns a property however I do not, if I am still eligible to contribute into the FHSSS. Moreover, if I am eligible to contribute up to $30 000, once withdrawn to purchase property, can this property be purchased in both our names or just mine?

Thanks,
Maddie

FHSS Scheme - When can I sign a contract

kellbubbles — Tue, 08 Oct 2019 07:56:58 GMT

Im wanting to seek clarification regarding the FHSS Scheme. I called the ATO but they lady they put me through couldnt clarify this.

I applied for a release of my Super Funds through the ATO website under First Home Saver. It shows my release request but what is not clear is if this is the determination or not.

It says status is pending so my questions are:

* Can I now sign a contract of sale now that I have requested the release of funds.

* How do I get a determination?

The website says the following

You should request the release of your FHSS amounts around the same time you start your home buying activities – for example, when you apply for a home loan.
After you have requested the release, it may take between 15 and 25 business days for you to receive your money.
You must apply for and receive a FHSS determination from us before signing a contract for your first home or applying for release of your FHSS amounts.

This is not clear as to where and when I can sign the contract. I have found land and have a contract of sale in my hands but does that mean since a week ago I applied for the release of funds, I can now sign a contract for my first home.

The website also says:

You have 12 months from the date you make a valid request for release of your FHSS amounts, to do one of the following:

sign a contract to purchase or construct your home – you must notify us within 28 days that you have signed the contract

Does that mean I can sign a contract within one week of applying for the release of the funds and without have a determination.

So how I have read it is, I have 1 week ago applied for the release of funds via the ATO website, , Im still pending the release of funds, but I can now sign the contract of sale. I just need to press the notify button to advise I have now signed a contract and I dont have to pay tax because I have applied for the release but not yet recieved the funds.

FHSS Claiming Tax Deduction

DarkHorse — Tue, 08 Oct 2019 01:42:54 GMT

Hi,

In applying for a withdrawal I came across the below criteria.

"must confirm as part of your release application that you will not claim further tax deductions on the non-concessional contributions included in the determination"

Given I made nonconsessional contributions last FY and this FY, both times notifying my Super of an intent to claim a deduction. My accountant has nearly completed last years return where I will be claiming a deduction for last years contribution.

Does the criteria above mean however that I cannot claim a deduction for this years contribution even though I have expressed my intent? And also that I will have to wait until my return for last year is lodged before I can withdraw to claim last years deduction?

Thanks

FHSS scheme and retirement village

Stuarts — Mon, 07 Oct 2019 23:38:18 GMT

Can a retirement village meet the definition of a residential premise for the purpose of the first home super saver scheme?

FHSS

yctomi0524 — Fri, 04 Oct 2019 23:21:42 GMT

Hi Officer,

Just having a question on the timeline of the whole FHSS scheme. The info on the ATO website and the letters that I have received from ATO contradict themselves big time which makes things utterly confusing.

I have got a determination on 13/09 and signed a contract on 14/09. Then I requested a release on 20/09 which is perfectly in line with what the new rule says, however,

1) The ATO website won't allow me to notify ATO of the purchase by saying that "my contract date cannot be before the release request date". I have called the super team and they did it for me manually. I also noticed other ppl who had similar problems on this matter.

2) I just received my release letter yesterday saying that "do not enter into a contract before we release the money, otherwise I will be paying the 20% tax". This contradicts what's in the new rule and it seems like that you have not updated any of the new rules within the system which attracts more questions in here and makes things confusing.

Thanks for your time in reading this and hopefully we can get more consistent and not so contradictory information.

FHSSS - am I better off with concessional or non-concessional contributions?

Mandy2 — Thu, 03 Oct 2019 01:32:49 GMT

Hello

I currently have a taxable income of $89,200. I want to start making contributions to my super under the FHSSS. I aim to contribute up to the maximum $30,000 over the next 3 years or so.

Say my taxable income did not change in the next three years or did not tick over the $90,000 threshold, am I better off just making after-tax contributions and claiming the 30% tax offset when the contribution is withdrawn?

If my taxable income does tick over $90,000, am I then benefited more through before-tax contributions to lower my taxable income?

Thanks, Mandy

FHSS for off the plan properties

Amchan — Wed, 02 Oct 2019 00:29:39 GMT

Could you pls assist me with how does the timing work in a scenario for the purchase of an off the plan property, with a small deposit and the final settlement has to take place upon completion of the build i.e. 6-9 months later. Some specific questions:

1. When should one ideally apply?

2. Can the deposit be paid before receiving the eligible amount from FHSS and the FHSS eligibility be used later at the time of final settlement ?

Thanks

Personal Contributions Release Process & applicable Tax Deductions

TaranJ — Tue, 01 Oct 2019 14:51:15 GMT

Hi There,
Thank you for this extensive community, I find it extremely useful.
I am a bit confused on process of FHSS with Personal contributions and would appriciate if you could help me.

1) Lets say I've put a total of $15k personal contributions (after-tax) in my super account & have filed `determination` mentioning no deductions. However, Apart from FHSS refund of this amount, I also want to claim a tax deduction on this amount.

a) My understanding is I can claim tax deductions on my voluntary contributions by giving `Notice Of Intention To Claim A Tax Deduction` to my super fund. When do I need to provide `notice of intention` to my super fund? Do I need to provide this before I `request for release` from ATO, or I can do it before end of FY, like the usual process?

b) Do I add my contributions as `concessional` or `non-concessional` when I apply for determination?
c) What do I mention in my deductions when I file my `determination for release`? (As it asks `what amount do I intend to claim`)

2) Concessional Super limits: Lets say, when I provide `notice of intentention` as per 1) above... my `personal super contributions` will become `concessional super contributions` for this year. Incase I cross the limit of $25K allocated to concessional contributions per year, can I use `Carry forward concessional contributions` from my last year? [As: https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Super-contributions---too-much-can-mean-extra-tax/?page=2 ]. Or what will be my alternative?

Looking forward to hearing soon from you, Thanks!

Additional employer contributions to spouse eligible for FHSS

RogerMoore — Mon, 30 Sep 2019 17:56:48 GMT

Hi all

This question https://community.ato.gov.au/t5/First-Home-Super-Saver-Scheme/FHSS-Scheme-spousal-contribution/td-p/11024 clarifies that salary sacrifice contributions made to a spouse super account are not eligible to be withdrawn under the FHSS scheme.

I am seeking clarification regarding additional employer contributions. My employer pays 12.5% super annuation. If I have 3% (above the current superannuation guarantee) paid to my spouse account, would it be eligible to be withdrawn under the FHSS.

I am not eligible for the FHSS. My spouse is eligible and is not working at the moment and is unlikely to work in FY19/20.

Thanks, RogerMoore

First Home Super Saver scheme - it seems like I'll be paying MORE tax if I do it?

Nomu — Sat, 28 Sep 2019 07:43:11 GMT

Hi guys

I've just been reviewing this link https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/First-Home-Super-Saver-Scheme/#Eligibilityforthescheme1

I was thinking I'd go for the concessional contributions (before tax), with the objective of paying less tax overall.

If I'm taxed 15% straight away on any voluntary contribution to my super, then when I have the money released for my home deposit I'm taxed my income tax rate (currently approx 36.65%), minus 30% of that 36.65% (ends up being 26.655%)

So all up I'm paying that 15% as it enters my super, then 26.655% of the remaining amount when it exits my super? By my calculations that ends up being approx 37% of the original amount, meaning I would have been better off keeping in my bank account. Plus if my income grows between when I start making voluntary contributions, and when I get the money released, I'll be even worse off I use this scheme

Am I misunderstanding the link, or doing my calculations wrong or something?

Thank you for your help

Can I claim a tax deduction for a voluntary contribution after it has been withdrawn?

fhomebuyerhelp — Thu, 26 Sep 2019 22:21:00 GMT

Hello,

I’d like to buy my first property this financial year. I made a 15,000 contribution last financial year, and claimed a tax deduction on a portion of it (to remain under the concessional contribution cap). I want to know whether I can again make a 15,000 contribution this financial year, withdraw it to purchase my first home, and still claim a tax deduction on part of it at the end of financial year even though the money will no longer be in my super account?

FHSS

Yengeh — Wed, 25 Sep 2019 03:02:31 GMT

FHSS release for construction: Assuming funds are already in super account

Release of funds say January 2020, buying land with intention to build within 12 months

Is the January release the one and only release possible? i.e. if it takes 12 months to get to the build contract could i put further funds in to the fund (say june 30, 2020) and thereafter release again.. Or would the January 2020 release be the one and only. Therefore any subsequent super contribution not available?

Release request - withholding tax

Emperor_2662 — Tue, 24 Sep 2019 11:26:38 GMT

Hi ATO team,

I am in the process of requesting a release as part of the FHSS.

While requesting a release, I have been asked to provide a withholding tax rate. The rate was initially filled based on my income during the last financial year which matches all the relevant calculations (i.e. marginal tax rate plus 2% Medicare levy minus %30 and etc.). However, I can modify the rate to any value that I choose.

There is also a statement in relation to lower withholding tax as:

"The withholding tax amount will be included as a credit in your income tax return. If you choose to lower the calculated rate you may need to pay a further amount when your income tax is assessed"

Now, my questions are:

1- Am I entitled to ask for a lower withholding tax rate? Meaning that I will receive an amount closer to the max release amount but I will need to return the tax when I lodge my tax return at the end of the financial year.

2- If the answer to the first question is yes, is there a limit on the tax rate? For example, can I choose 0% for the withholding tax and pay the full and the accurate FHSS tax by the end of the financial year?

3- Is it correct to say that the “further amount” on the statement will be equal to the FHSS tax (i.e. marginal tax rate plus 2% Medicare levy minus %30 and etc.) and does not include any penalties or fees due to a lower chosen rate?

I would appreciate it if you could answer these questions.

Regards,

Amir

Wrong bank account

olalola — Sat, 21 Sep 2019 06:47:25 GMT

Hello

I requested the release of FHSS and it has been processed but I realized the day after ATO processed it that I made an error in the bank account number. I’m 100% sure the bank account doesn’t exist so it will bounce back. I’ve since updated my bank account details online.

My question is how long will take it for ATO to process it again into the correct bank account? I’m pretty sure it should have bounced back by now. I’m running a bit time on time with the settlement coming up

Thanks

FHSS Tax Payable

kellyb — Wed, 18 Sep 2019 06:28:16 GMT

Hi There!

Firstly, I've been finding these boards very informative so thanks for the resource.

I just have a question regarding what happens if your Tax Payable in the year you withdraw your super is more than your tax payable without withdrawing?

If I earn $115,000 and contribute $10,000 to super and withdraw the $10,000 in the same tax year, my calculations work out to be that I'll pay more tax than if I didn't withdraw in that year.

Scenario with withdrawing:

Taxable income $115,000 - $10,000 = $105,000

FHSS Income + $10,000 x 0.85 = $8,500

Total Income 105,000 + 8,500 = 113,500

Tax on Taxable Income 20797+(113,500-90000) x 0.37) + (113,500 x 0.02) = 31,762

Less FHSS Tax Offset 8,500 x 30% = 2,550

Tax Payable 31,762 - 2,550 = 29,212

Scenario with contributing and not withdrawing:

Taxable Income $105,000

Tax on Taxable Income 20797+(105,000-90000) x 0.37) + (105,000 x 0.02) = 28,447

Provided my calcs are correct, I'd pay $765 more tax by withdrawing than if I didn't withdraw in the same year. For the purposes of taxation of the FHSS, would I not have to pay any tax on the FHSS withdrawal? In this scenario, I'd get the full $8,500 to use towards my deposit. Can you please confirm this?

Thanks!

FHSS

D-Goodyer — Wed, 18 Sep 2019 01:23:58 GMT

The money has been deducted from my super fund, how long before it reaches my bank?

FHSS scheme

Lexi — Thu, 12 Sep 2019 09:04:11 GMT

I'm just wondering how this works, so generally once the funds are released in regards to the FHSS scheme you can use this to purchase your first home. For this to be eligible you are required to live in the property for a period of time (1 year?), other wise you are penalised. That makes sense.

So what happens if you purchase a property that is currently tenanted and you can't move in immediately without breaking a fix term lease? Will you be penalised if you can't move in until the lease expires (and say the expiry is almost a whole year)? Or does the FHSS scheme require you to break the lease (and incur the consequences) to satisfy living in the property?
Can anyone give me some clarity around this?

Cheers

Able to transfer deposit to secure land

guresu — Tue, 10 Sep 2019 13:21:21 GMT

Hi,

I am currently salary sacrificing into the FHSS Scheme and haven't applied for the FHSS determination yet.

An initial deposit of $1,000 is required to secure a vacant block of land. Exchange of contracts is required within 3 weeks of paying the initial deposit. If I wanted to secure a block of land shortly by paying the initial $1,000 deposit, does it make me ineligible for the FHSS Scheme? Or would I still be eligible as contracts haven't been exchanged yet?

I would still like to salary sacrifice into the FHSS Scheme until at least early October 2019.

Thanks

FHSS after Super release for compassionate reasons

confused777 — Sat, 07 Sep 2019 10:28:02 GMT

I have been making pre-tax voluntary super contributions for >3 yrs. In the 2017-18 tax year I withdrew some superannuation for a medical procedure (compassionate grounds). The sum was greater than my voluntary contributions over the previous years. Does the compassionate grounds withdrawal specifically take from any voluntary contributions first, or can I still access the money I deposited voluntarily in 17-18 FY year for the FHSS?

FHSS Determination, sign contract and release

yctomi0524 — Sat, 07 Sep 2019 06:44:29 GMT

Hi,

Just having a question on the timing of the three events. Assume the timeline is:

12/9 Request a determination
13/9 Sign a contract
24/9 Another non-concessional contribution is made through salary sacrifice
25/9 Request another determination that overrides the first one (which include the contribution made on 24/7)
25/9 (13 days after the first determination) Request a release

Would this timeline incur a tax penalty? Also how much can I get from the 25/9 release?
Sorry for getting a bit messy but since I can request several determinations, just wanna know whether doing this will incur any taxes.
Thanks a lot for your time.

Missed the notification period to ATO on fhss

Ugurt — Sat, 07 Sep 2019 04:06:40 GMT

Hi,

I have fhss released last year and was searching properties since than. On Jun 2019, we found out house and signed the contract. However soon after there was a family emergency and we travelled back overseas. We returned back to Australia just last week and i notified ATO. It said i missed the 28 days notif period. I also see tax incurred on my tax return for fhss released amount. Is there any anyway that i can save back that tax amount?

FHSS release and contract sign date

olalola — Thu, 05 Sep 2019 23:29:18 GMT

Hello

I requested a Determination on the 8th May 2019. Then on the 24th August 2019 I knew there might be a good chance of me buying a house that day because I was going to make an offer. So that morning I requested another determination and then immediately requested a release of the funds.

Later that day I made the offer which got accepted so I signed the contract. I then went on ATO online to notify that I signed the contract then I got the following message

You signed your contract to purchase or construct more than 14 days before you made a valid request to release your FHSS amounts. We will contact you if we need any further information or if you are issued with a FHSS tax assessment

I had a valid determination 3 months prior then made another one on the same day BEFORE saying a contract. Am I still liable to pay the FHSS tax? Note: My funds have not been released year (it has only been 10 business days).

Thank you