Hi,
I have put the maximum $50K over the last few years into my super for the FHSSS, and have been making determinations every fortnight, since September 2022.
In September 2023 I signed a contract and paid a $5K deposit for an "Off the plan" townhouse (which I secured through the Home seeker SA program), which wouldn't be finished being built for at least another 12 months. I asked the realestate agent when I was signing the contract, if I needed to release the money now from my FHSS, because I had read on the ATO website that you should release the money when you sign the contract. She said that I didn't need to release it now, because this was a unique situation and it was an "off the plan" property that wouldn't be finished for a long time yet. She said I should release the money when it was much closer to when the house would be finished, settlement, etc. What she said made a lot of sense seeing as you can only release the FHSS money once, so you wouldn't want to release it ages before you actually used it. And it also meant that I could leave the money in my super, continuing to earn interest, which was fine with me. So I didn't release the FHSS money and went on with life, waiting for my house to be built.
Fast forward to the present. My realestate agent informed me recently that my house is nearly complete and to start getting finances ready, etc. So because of this, I went on to the ATO website to re-read exactly what I needed to do to release the money. It was then that I realised, that the real estate agent probably didn't know that much about the FHSSS, and I almost certainly should have released the money when I signed the contract in September 2023.
I have released the FHSS money as of 23rd October 2024 and wating to receive it, but not sure what I'm supposed to do now.
I understand that this is probably my fault for not reading up on the FHSS properly. But I am worried that I will have to pay the 20% FHSS tax (which will be about $10K), which means that using this scheme was all a waste.
If there's any way I wouldn't have to pay the 20% FHSS tax, I would love to know what to do.
So my questions are:
- Because it is an "off the plan" house through home seeker, are there any exceptions about being able to release the money after the initial contract was signed?
- e.g. Would the ATO be satisfied with something else that I sign at settlement, as evidence to show that the FHSS was being used to purchase my first house?
- I have a FHSS determination from August 2023 (before I signed the contract) saved on my computer, could that somehow be used so that the 20% FHSS tax is not applied?
- I have already requested release, and depending on whether the 20% FHSS will be applied or not...
- How should I fill out the "STAGE 3 - Notification"?
- Or do I not fill out "STAGE 3 - Notification" anymore, because it's been more than 90 days since the contract was signed?
- If the 20% FHSS tax must be applied, when would that take affect
- At the end of 24 months after requesting release (if "STAGE 3 - Notification" is never filled out)?
- At the end of the next financial year EFOY 2024-25?
If there's any way I can rectify this, so that I don't have to pay the 20% FHSS tax, I'd appreciate the advice. Happy to contacted directly too.
Thanks.
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