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Confused re: determination vs withdrawal of funds

I'm new

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Hello

 

I have made some voluntary contributions to my super (totalling 22.5k pre 15% tax) towards my FHSSS

 

I have now started to look at a few properties and found one I am interested in putting an offer on.  I have not signed any contract

 

However the FHSS determination vs withdrawal confuses me despite reading the ATO page. 
1. Do i need to both have applied for a determination  before an offer putting forward? Or is it before having it accepted and contract signing?

2. Is the determination instant on the ato  my gov website or does this take time?

3. Do i also need to apply for the release of funds before signing the contract? 

Also if I do not get this house I do expect to buy within 3-6 months. If i dont get this one but stay in the market, i was confused if i should wait to apply for release my FHSSS till i have a new house accepted vs if i can just apply in advance.

4. Do i need to have an offer accepted before applying to release funds? From what i understand i can apply to release the funds in advance as long as i use it within 12 months, is this correct ? And what date this this 12 months start from (ie day of applying for the funds, or day of receiving the funds)?

 

Thanks for your time

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Most helpful response

Community Support

Replies 0

Hi @cpnarp,

 

We know it can all get a bit overwhelming, which is exactly why we're here to help.


The FHSS determination tells you how much you may be eligible to release, and the release request is your request to withdraw an amount up to the amount you are allowed to release..


A determination is instant, but a release request will take approximately 15 - 25 business days to receive your money.


You must have a FHSS determination before you sign any property contract – this includes a contract on land only. Once you have received a determination, you can submit a FHSS scheme release request to withdraw your eligible FHSS amount.

 

You can request the release of your FHSS money either:
• As soon as you have your FHSS determination i.e. before you sign any property contract or
• within 14 days of entering into a property contract (you need to make sure you do not make the release request after 14 days of signing your contract.


You do not need to wait for an offer to be accepted before applying for the withdrawal - you can apply whenever you are ready, but the latest time you can request a release is within 14 days of signing a property contract. As you mentioned you need to be aware that you have 12 months to sign a contract. The 12 months applies from the date you request a release of funds.

Don't forget, you need to notify us within the required timeframes when you've entered a contract (not settlement date). If we  heard from you within the first 12 months, we will grant you a further 12 months to purchase your home or recontribute the required amount to your super fund. This means you have up to 2 years to purchase or recontribute.
haven't

 

Happy home hunting! Smiley Happy

1 REPLY 1

Most helpful response

Community Support

Replies 0

Hi @cpnarp,

 

We know it can all get a bit overwhelming, which is exactly why we're here to help.


The FHSS determination tells you how much you may be eligible to release, and the release request is your request to withdraw an amount up to the amount you are allowed to release..


A determination is instant, but a release request will take approximately 15 - 25 business days to receive your money.


You must have a FHSS determination before you sign any property contract – this includes a contract on land only. Once you have received a determination, you can submit a FHSS scheme release request to withdraw your eligible FHSS amount.

 

You can request the release of your FHSS money either:
• As soon as you have your FHSS determination i.e. before you sign any property contract or
• within 14 days of entering into a property contract (you need to make sure you do not make the release request after 14 days of signing your contract.


You do not need to wait for an offer to be accepted before applying for the withdrawal - you can apply whenever you are ready, but the latest time you can request a release is within 14 days of signing a property contract. As you mentioned you need to be aware that you have 12 months to sign a contract. The 12 months applies from the date you request a release of funds.

Don't forget, you need to notify us within the required timeframes when you've entered a contract (not settlement date). If we  heard from you within the first 12 months, we will grant you a further 12 months to purchase your home or recontribute the required amount to your super fund. This means you have up to 2 years to purchase or recontribute.
haven't

 

Happy home hunting! Smiley Happy