With the changes in the 24/25 tax rates, how will the First Homebuyer Super Saver be affected?
The current tax on FHSS is your marginal tax rate minus a 30% offset. With the changes in 24/25 FY, will the FHSS be adjusted to suit or will the 30% offset remain?
This is important to know to ensure that the FHSS is best utilised when comparing 23/24 and a 24/25 withdrawal.
Although I can’t predict what may happen in the future.
I can tell you right now If you’re wanting to release your funds, yes, you’re right the withholding rate will be calculated as your marginal tax rate plus Medicare levy minus the 30% FHSS tax offset.
If there are any changes in the future, we’ll be sure to keep everyone updated.
Watch this space.
Although I can’t predict what may happen in the future.
I can tell you right now If you’re wanting to release your funds, yes, you’re right the withholding rate will be calculated as your marginal tax rate plus Medicare levy minus the 30% FHSS tax offset.
If there are any changes in the future, we’ll be sure to keep everyone updated.
Watch this space.
Thank you for your response. Hopefully there is an answer on this one ASAP, as the effect of the changes is not a small amount of money.
For example:
$50,000 FHSS withdrawal at a marginal tax rate of 45% (in 2023/23) will amount to $41,500 after FHSS taxes. If the marginal tax rate changes to 30% in 2024/25, the amount increases to $49,000. This is a $7,500 difference at the highest current tax bracket. With the same issue applicable across all tax brackets.
When can we expect an answer on this, is it being looked into? I do not want to withdraw my FHSS now if it means potentially forfeiting thousands of dollars. I am sure many others are having the same dilemma.
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