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Early release of superannuation & FHSSS Contributions

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Newbie

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Hi,

If I apply for early release of superannuation for compassionate grounds (COVID-19), will this affect the amount eligible for release under the FHSSS, if the amount I request is less than the amount I have in my super account exluding the FHSSS contributions? Are the contributions and releases calculated on last in/first out basis or can I "choose" to not affect those contributions?

For example if I have 25k in my super account, 15k is volountary contributions (eligible for FHSSS release) and 10k is employer contributions/rollover (not eligible) and I requested 10k, will it leave those voluntary contributions untouched for future FHSSS application or will it simply count backwards from the application date to determine "what" contributions made up the last 10k deposited and withdraw those?

Cheers.

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ATO Certified

Community Support

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Hi @ryan_m

 

Thanks for your post.

 

Applying for a COVID-19 (novel coronavirus) – early release of superannuation won't affect your maximum FHSS release amount. This is the maximum amount that you are eligible to have released to you in accordance with the first home super saver (FHSS) scheme. For more information about both super payments, refer to our website.

 

When a super fund makes a payment from a member's account, they don't operate on a last in, first out basis. That isn't how it works. As long as there is enough in the member's account to make the requested payment (early release request or FHSS release), they will pay it accordingly. If there isn't enough, in most cases they will pay what is available.

 

When you are ready to receive your FHSS amounts, to work out how much you are eligible to have released (your maximum FHSS release amount), you need to request a FHSS determination. In addition to answering a few questions, you're asked to provide some details about the voluntary contributions you made including amounts, types and dates.

 

For more information about the FHSS scheme and applying to release your savings, have a look at the first home super saver scheme page on our website.

 

It doesn't actually matter whether there is enough in your super account to cover your maximum FHSS release amount at the time of requesting your determination. As long as there is enough to cover it when you submit your FHSS release request, your super fund (or funds) should be able to release the requested amount. If there isn't, you can request a smaller amount.

 

Hope this helps. We understand that it is a stressful time. If you have any more questions, feel free to ask.

 

Thanks, ChrisR

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @ryan_m

 

Thanks for your post.

 

Applying for a COVID-19 (novel coronavirus) – early release of superannuation won't affect your maximum FHSS release amount. This is the maximum amount that you are eligible to have released to you in accordance with the first home super saver (FHSS) scheme. For more information about both super payments, refer to our website.

 

When a super fund makes a payment from a member's account, they don't operate on a last in, first out basis. That isn't how it works. As long as there is enough in the member's account to make the requested payment (early release request or FHSS release), they will pay it accordingly. If there isn't enough, in most cases they will pay what is available.

 

When you are ready to receive your FHSS amounts, to work out how much you are eligible to have released (your maximum FHSS release amount), you need to request a FHSS determination. In addition to answering a few questions, you're asked to provide some details about the voluntary contributions you made including amounts, types and dates.

 

For more information about the FHSS scheme and applying to release your savings, have a look at the first home super saver scheme page on our website.

 

It doesn't actually matter whether there is enough in your super account to cover your maximum FHSS release amount at the time of requesting your determination. As long as there is enough to cover it when you submit your FHSS release request, your super fund (or funds) should be able to release the requested amount. If there isn't, you can request a smaller amount.

 

Hope this helps. We understand that it is a stressful time. If you have any more questions, feel free to ask.

 

Thanks, ChrisR