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FHSS release

Initiate

Views 3625

Replies 7

My FHSS funds have not been paid. It has been over 25 days and settlement is fast approaching. I have tried calling the ATO for an update and there line is constantly busy and I am told to try later and disconnected. This is extremely frustrating.
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 0

Hi @TMudge,

 

Welcome to our Community!

 

We can provide you with general information here, however we can't guarantee it's safe to share personal information in an online forum so we can't access your account to check the processing of your release.

 

If you still haven't received your funds or you're dissatisfied with our service and processes, you can choose to lodge a formal complaint. A complaints resolver will contact you within three working days to discuss your situation and work out a course of action.

 

Thanks, JodieH

 

Thanks, JodieH.  

7 REPLIES 7

Anonymous

Replies 6

If you signed a contract for the purchase of property before your FHSS funds were released then you need to have a read of this post ...     https://community.ato.gov.au/t5/General-super-questions/Signed-a-contract-just-before-applying-for-F...

 

I suggest calling the ATO either very early morning or very late in evening .... 

 

ATO 13 10 20

Initiate

Replies 5

Thanks for the advice. I did actually request release of funds prior to signing the contract so shouldn't be slugged with additional tax penalty? My issue is just that by the time I am paid the super funds it will be after settlement so won't have those funds in time. Called them this morning and less than useless. Could offer no advice as to when funds would be received.

Anonymous

Replies 4

I understand that your main issue is that the funds may get to you after the settlement date, but that is another reason why you should not sign a contract before the funds are actually realeased by the ATO ....

 

The release of funds is not automatic, the ATO have to follow procedures and protocols when they make a FHSS determination, so the question now is .... what happens if the ATO do not release the funds in time for settlement or worse still not at all ???? 

 

You may be subject to the FHSS penalty tax of 20%  as you signed the contract before the funds are released by ATO ....   and making the application before signing will not be enough to avoid the tax.

 

The ATO have this statement on a number of its website pages ..

" Don't sign your contract to purchase or construct your home until after we have released your money or you may be liable to pay FHSS tax. "

 

https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/First-Home-Super-Saver-Sch...

Initiate

Replies 2

They can't determine to not release at all obviously, they are my funds salary packaged correctly as per their guidelines. The tax gouge is ridiculous but my issue is the lengthy delay in processing release requests. 25 days is too long imo, but for me they haven't met their own deadline of 25 days, nor can they offer any advice as to when it might be released. Understand they have to follow procedures and protocols, but if the scheme is so overly complicated that following these procedures and protocols cannot be done in 25 days, they should have not advised funds will be returned within 25 days. They should also understand their own systems well enough to determine where my request sits in their queue. Others have flagged before how ridiculous it is to think you can request fund release and have it paid prior to signing contract. Property would likely be sold by then.

Anonymous

Replies 0

Yeah, I understand what your saying about time periods and not being able to sign contracts before funds are released (which was a decision for the federal government). 

 

The ATO probably under estimated the number of applications they were going to get when the scheme became open on 1 07 2018.   

 

As for determining not to release,...  they can if they find that someone is not elidigble and a lot of factors are taken into account, for example they find out that someone has owned a home before ....

 

Im not saying they are not going to release your funds,  ... just that they could determine not to release funds ... 

 

Good Luck ...

I'm new

Replies 0

Hi TMudge, may i know the status of your request to release the funds? Also, i agree that it doesnt make sense as to why we need to wait for the fund to be released into our accounts first before we can sign contract to purchase. Instead of helping first home buyers this is just delaying the opportunity to get into the property market. I understand that ATO needs to follow procedure and protocol before releasing the funds but at least they should allow us to sign contracts as soon as we have requested for a release of funds. I hope Govt will revisit this and make the necessart adjustment to help ease the process.

Most helpful response

Former Community Support

Replies 0

Hi @TMudge,

 

Welcome to our Community!

 

We can provide you with general information here, however we can't guarantee it's safe to share personal information in an online forum so we can't access your account to check the processing of your release.

 

If you still haven't received your funds or you're dissatisfied with our service and processes, you can choose to lodge a formal complaint. A complaints resolver will contact you within three working days to discuss your situation and work out a course of action.

 

Thanks, JodieH

 

Thanks, JodieH.