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_JaxonAvery(Initiate)Initiate
17 May 2021

Good Day,

so have a few questions in relation to the FHSS Scheme.

1 - Earnings off the contributions that are eligible

"you can then apply to release your voluntary contributions, along with associated earnings" does this mean in theory if I have a super account that the report states 8% earnings, I put 10k in super at the start of that year, e.g. I can withdraw $10,800.00 as per the FHSS Scheme? and yes obviously subject to tax.

2 - Tax on the withdrawal - specifics

It is as simple for any amounts pulled out at the Margin tax rate - 30% tax offset?

e.g. 32.5% tax rate + 2% medi = 34.5 - 30 = 4.5% tax on the gross amount taken for the FHSS Scheme?

3 - when will the caps will be updated as per the budget (and the online calculator you have) ??

4 - Concessional contributions 85%

To confirm you are referring to 85% of the Gross amount e.g 10k into super gross then only 8.5k can be withdrawn under FHSS?

Thank you very much, much appreciated

1,384 views
4 replies
1,384 views
4 replies

Most helpful response

Most helpful replyATO Certified Response

JodieR_ATO(Community Support)Community Support
ATO Certified Response20 May 2021

Hi @JaxonAvery,

In response to your questions -

1. We will determine the associated earning. The website advises:

  • associated earnings calculated on these contributions using a deemed rate of return this is based on the 90-day Bank Bill rate plus three percentage points (shortfall interest charge rate).

The FHSS maximum release amount takes into account the $15,000 limit from any one year and $30,000 total limit to the total contributions across all years when calculating the eligible contributions, before adding the associated earnings. You can view the SIC rates from the link below.

2. Tax on withdrawals, please use the link below.

3. In relation to the recent budget measures. The current proposal for FHSS release amount to increase to $50000, does advise 1 July 2022, however this may be subject to change

4. Correct, the super fund applies 15% contributions tax to the concessional contributions, therefore a maximum of 85% of your concessional contributions (eligible under FHSS) can be withdrawn.

Please use the links below for further assistance.

Links-

FHSS Maximum release amount.

FHSS $50000 cap.

FHSS tax rates.

SIC interest charge rates.

All the best.

All replies

Most helpful replyATO Certified Response

JodieR_ATO(Community Support)Community Support
ATO Certified Response20 May 2021

Hi @JaxonAvery,

In response to your questions -

1. We will determine the associated earning. The website advises:

  • associated earnings calculated on these contributions using a deemed rate of return this is based on the 90-day Bank Bill rate plus three percentage points (shortfall interest charge rate).

The FHSS maximum release amount takes into account the $15,000 limit from any one year and $30,000 total limit to the total contributions across all years when calculating the eligible contributions, before adding the associated earnings. You can view the SIC rates from the link below.

2. Tax on withdrawals, please use the link below.

3. In relation to the recent budget measures. The current proposal for FHSS release amount to increase to $50000, does advise 1 July 2022, however this may be subject to change

4. Correct, the super fund applies 15% contributions tax to the concessional contributions, therefore a maximum of 85% of your concessional contributions (eligible under FHSS) can be withdrawn.

Please use the links below for further assistance.

Links-

FHSS Maximum release amount.

FHSS $50000 cap.

FHSS tax rates.

SIC interest charge rates.

All the best.

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