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Correction of incorrect withdrawal

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I am assisting someone who made a $15,000 contribution in FY19 with the intention of using it for FHSSS purposes but subsequently has bought a house in his wife's name and still withdrawn the money through MyGov from hs own super fund even though he isn't on the title deed.  He is aware now that the tax penalty will be 20%, but would prefer to recontribute the money back into his fund to avoid that (which i understand is an option).  It is has however been some months since he made the withdrawal and so i would like to know what timframe there is for him to recontribute the money to his super fund to correct the error (and if there are any other penalties for him should he do so).  The incorrect withdrawal was made earlier this (FY20) financial year.  Thank you for any help.

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Most helpful response

ATO Community Support

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Hi @Arran 

 

An individual has 12 months from the date they requested the funds to be released to sign a contract to purchase a home or construct a home. If they do not sign a contract within this time then they can recontribute an amount into their super fund(s). This amount must be a non-concessional contribution and be at least equal to their assessable FHSS released amount, less any tax withheld. This amount is stated in their payment summary, and may be less than the total amounts released to them.

 

This information and more about First Home Super Saver Scheme is available on our website.

 

Thanks, Ari

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @Arran 

 

An individual has 12 months from the date they requested the funds to be released to sign a contract to purchase a home or construct a home. If they do not sign a contract within this time then they can recontribute an amount into their super fund(s). This amount must be a non-concessional contribution and be at least equal to their assessable FHSS released amount, less any tax withheld. This amount is stated in their payment summary, and may be less than the total amounts released to them.

 

This information and more about First Home Super Saver Scheme is available on our website.

 

Thanks, Ari