FHSS contribution to SMSF & How to access it?

Question

 · Accepted Answer

BlakeATO · Answer

It doesn't matter which fund the contributions were originally paid to or where they were transferred to, so long as they are voluntary. You and you wife have the same options for having your employers withhold more to pay to your funds: - You can enter into a salary sacrifice arrangement with your employer. They will withhold the extra amounts from your pre-tax salary, meaning you won't pay PAYG withholding on the amount. When it goes to your fund, they withhold 15%. When you release them, you can take out that 85% remaining percent. - You can ask them to take it from your post-tax earnings. These will be non-concessional contributions and will contribute to your taxable income for that year. When you decide you want to rollover your funds to the SMSF, you can do so through your ATO online services. We, nor the industry fund, or the SMSF, need proof the contributions are for FHSS. Any voluntary contributions made from 1 July 2017, provided they're made to an eligible super fund, are eligible for FHSS. There is no paperwork you need to do now to let us know you plan on using the scheme. Remember that to be eligible for FHSS you must not have any freehold interest in property. This includes vacant land where you have signed a contract, even if settlement and registering the title haven't passed. If you're eligible, when you're ready to release your funds you will need to apply through your Online services for individuals. Each person's eligibility is separate and each release is separate, so both you and your wife need to complete a determination and release request. Once we approve the release, the SMSF will receive notification. The SMSF transfers the release amount to us. We withhold the appropriate amount of tax, and send it on to you, the individuals. You can read more about FHSS on our website.

Explore tax & super topicsExplore tax & super topics

About usAbout us