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FHSS concession contribution and tax deductions

Newbie

Views 90

Replies 1

Hello Everyone,

 

I'm looking to buy my first home in the next couple of months. I wanted to use the concessional contribution of my super as PART of the FHSS scheme. My situation is like this  :

I haven't made any concessional/non-concessional contribution to my super anytime in the last 5-6 years. It is always used to be SG from my employer which was around 10k. So for each year from now (FY21-22) till FY 2018-19, I have (15k +15k+15k) =45k of concessional contribute cap unused. Now If I want to make use of it, using the carry-forward rule, can I make a lump sum amount of 30k  now to super and then apply for FHSS towards deposit first home for the amount 30k (15k for current year and 15k for the previous year)  ?

and with that, I would be able to claim a tax deduction as well in the current FY? ()

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 0

Hi @nikpar1834 

 

The carry-forward rule for concessional contributions, the FHSS maximum release amount and claiming a deduction are all separate from one another.

 

While the carry-forward rule allows you to contribute above the annual concessional cap (if you meet the eligibility criteria), the FHSS maximum release amount from any one year of $15,000 still applies.

 

So, even if you were to take advantage of the carry-forward rule and contribute $30,000 into super in the 2021-22 financial year, you could only request to release a maximum of $15,000 of your voluntary contributions in 2021-22.

 

Regarding claiming a deduction, when you contribute a personal lump sum into your super, it will be treated as a non-concessional contribution. If you meet the criteria to claim a deduction for personal contributions, then the amount you claim will be treated as concessional contribution.

 

Let us know if you have any further questions.

 

Thanks

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @nikpar1834 

 

The carry-forward rule for concessional contributions, the FHSS maximum release amount and claiming a deduction are all separate from one another.

 

While the carry-forward rule allows you to contribute above the annual concessional cap (if you meet the eligibility criteria), the FHSS maximum release amount from any one year of $15,000 still applies.

 

So, even if you were to take advantage of the carry-forward rule and contribute $30,000 into super in the 2021-22 financial year, you could only request to release a maximum of $15,000 of your voluntary contributions in 2021-22.

 

Regarding claiming a deduction, when you contribute a personal lump sum into your super, it will be treated as a non-concessional contribution. If you meet the criteria to claim a deduction for personal contributions, then the amount you claim will be treated as concessional contribution.

 

Let us know if you have any further questions.

 

Thanks