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FHSS release and contract sign date

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Newbie

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Hello

 

I requested a Determination on the 8th May 2019. Then on the 24th August 2019 I knew there might be a good chance of me buying a house that day because I was going to make an offer. So that morning I requested another determination and then immediately requested a release of the funds.

 

Later that day I made the offer which got accepted so I signed the contract. I then went on ATO online to notify that I signed the contract then I got the following message

 

You signed your contract to purchase or construct more than 14 days before you made a valid request to release your FHSS amounts. We will contact you if we need any further information or if you are issued with a FHSS tax assessment

 

I had a valid determination 3 months prior then made another one on the same day BEFORE saying a contract. Am I still liable to pay the FHSS tax? Note: My funds have not been released year (it has only been 10 business days).

 

Thank you

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ATO Certified

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Hi @olalola

 

Welcome to our Community.

 

The first home super saver (FHSS) scheme rules allows you to sign a contract to purchase or construct your home from the date you make a valid request to release your FHSS amounts. It sounds as though you have met this requirement.

 

If you sign a contract to purchase or construct your home you must notify us within 28 days of signing the contract. It sounds as though you have met this requirement as well.

 

As you are probably aware, there were some recent changes made to how the FHSS scheme works. For more information, refer to the important changes to the first home super saver scheme page on our website.

 

Under the old rules, you couldn't sign a contract to purchase or construct your home until we had released a FHSS amount to you. The new rules no long require this. In turn, from everything that you have stated, you have met the requirements.

 

The 20% FHSS tax applies when you don't sign a contract within the required time or you don't notify us of the signed contract within the required time. You have signed a contract and notified us within the required time. In turn, you shouldn't be liable for this tax.

 

For more information about the scheme, check out the first home super saver scheme page on our website.

 

It sounds as though you have received a system generated message. From what you have said, it doesn't sound as though you should have an issue. In saying that, we will contact you if we need any further information.

 

Hope this helps.

 

Thanks,

 

ChrisR

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Newbie

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I'm in the same boat. I received a letter today to confirm the funds had been released, and it contains the following advice which is contradictory to the information provided on the ATO website.

"Do not sign a contract to purchase or construct your residential premises until we have released the money to you. If you do, you will have to recontribute the required amount to your super fund or pay the FHSS tax. This is equal to 20% of your assessable FHSS released amounts."
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Initiate

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I received the same reply letter saying so, I believe their online system has not been updated with the latest changes to the FHSS, but in the end, the taxation office will process it according to the latest rules.

 

Hope ATO to update their system to reflect the recent changes of FHSS legislations.

Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @olalola

 

Welcome to our Community.

 

The first home super saver (FHSS) scheme rules allows you to sign a contract to purchase or construct your home from the date you make a valid request to release your FHSS amounts. It sounds as though you have met this requirement.

 

If you sign a contract to purchase or construct your home you must notify us within 28 days of signing the contract. It sounds as though you have met this requirement as well.

 

As you are probably aware, there were some recent changes made to how the FHSS scheme works. For more information, refer to the important changes to the first home super saver scheme page on our website.

 

Under the old rules, you couldn't sign a contract to purchase or construct your home until we had released a FHSS amount to you. The new rules no long require this. In turn, from everything that you have stated, you have met the requirements.

 

The 20% FHSS tax applies when you don't sign a contract within the required time or you don't notify us of the signed contract within the required time. You have signed a contract and notified us within the required time. In turn, you shouldn't be liable for this tax.

 

For more information about the scheme, check out the first home super saver scheme page on our website.

 

It sounds as though you have received a system generated message. From what you have said, it doesn't sound as though you should have an issue. In saying that, we will contact you if we need any further information.

 

Hope this helps.

 

Thanks,

 

ChrisR