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Accidental error when requesting fhss release

Newbie

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Replies 7

Hi,
I recently applied for a fhss determination and accidentally selected "non concessional" instead of "concessional". This has the effect of increasing my maximum release amount more than it should have been if I had filled it out correctly (it should have been concessional). Not realising this, I applied for release of fhss funds based on this erroneous determination.

What can I do to amend or fix this release request so that the maximum release amount is calculated on the basis of my concessional contributions?
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Best answer

Community Manager

Replies 4

 Hi @clee1501,

 

 Thanks for your patience.

 

The law in relation to release authorities allows the maximum FHSS release amount to be released from either the taxable or tax-free component. It is not necessary to proportion the amount between the components. The FHSS release authority will not specify from which component the amount is to be released.


The ATO will issue a release authority to each of your super fund/s. This release authority will show the total amount to be released from each fund. There will not be a separate release authority for each financial year.


From 1 July 2018, an individual can request a first home super saver (FHSS) determination from the ATO. The FHSS determination will show the FHSS maximum release amount. After receiving a FHSS determination an individual can make a request to the ATO to release this maximum amount or a lesser amount. The ATO will then issue a release authority to the relevant fund/s, who in turn will then send the requested release amounts to the ATO. The FHSS determination is only available to the individual and will not be sent to the super fund/s.


The ATO will then:


•    withhold the appropriate amount of tax, and
•    send the balance to the individual.


A payment summary will subsequently be sent to the individual showing their assessable FHSS released amounts, which comprise:
•    concessional contributions
•    associated earnings on both concessional and non-concessional contributions.


The individual will need to include this amount in their tax return for the year they request the release.

 

Thanks

 

KylieS

 

7 REPLIES 7
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Community Manager

Replies 1

Hi @clee1501,

 

We are looking into this one for you.

 

Thanks

 

KylieS

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Newbie

Replies 0

Thanks i would appreciate some clarification as it is affecting my ability to purchase a home since I'm not sure what to do with the released funds.
Highlighted

Best answer

Community Manager

Replies 4

 Hi @clee1501,

 

 Thanks for your patience.

 

The law in relation to release authorities allows the maximum FHSS release amount to be released from either the taxable or tax-free component. It is not necessary to proportion the amount between the components. The FHSS release authority will not specify from which component the amount is to be released.


The ATO will issue a release authority to each of your super fund/s. This release authority will show the total amount to be released from each fund. There will not be a separate release authority for each financial year.


From 1 July 2018, an individual can request a first home super saver (FHSS) determination from the ATO. The FHSS determination will show the FHSS maximum release amount. After receiving a FHSS determination an individual can make a request to the ATO to release this maximum amount or a lesser amount. The ATO will then issue a release authority to the relevant fund/s, who in turn will then send the requested release amounts to the ATO. The FHSS determination is only available to the individual and will not be sent to the super fund/s.


The ATO will then:


•    withhold the appropriate amount of tax, and
•    send the balance to the individual.


A payment summary will subsequently be sent to the individual showing their assessable FHSS released amounts, which comprise:
•    concessional contributions
•    associated earnings on both concessional and non-concessional contributions.


The individual will need to include this amount in their tax return for the year they request the release.

 

Thanks

 

KylieS

 

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Newbie

Replies 3

Hi,

Thanks for your reply. I still don't fully understand what I need to do (if anything), could you explain what my next steps should be?
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Community Manager

Replies 2

Hi @clee1501,

 

When you receive your determination you can request  a lower amount that what is quoted on the determination, you don't have to take out the full amount.

 

Thanks

 

KylieS

 

 

 

 

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Newbie

Replies 1

Hi kylie

Thanks for your reply. Unfortunately as per my original post, I have already applied for a release of the full amount specified in my erroneous determination. What should I do in this case? Thanks
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Community Manager

Replies 0

Hi @clee1501,

 

Unfortunately no changes can be made to the release, you will need to  include the assessable income in their tax return as shown on the payment summary.

 

KylieS