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FHSS

Newbie

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Replies 1

Hi 

 

I have contributed to my super for FHSS two years, first year 15,000$ & second year 20,000$, hoping that I can withdraw 30,000 after tax. Now that I want to release the FHSS and buy my first home, I can only withdraw 26,296$. 

 

Can you please advise what is the best way to withdraw 30,000$ as the FHSS cap? 

 

Regards,

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @Golsh 

 

If you only make concessional contributions (through salary sacrifice or claiming a deduction for personal contributions) towards the FHSS scheme, your maximum release amount will be calculated on:

  • 85% of your eligible concessional contributions, and
  • your associated earnings on your eligible concessional.

 

Only 85% of your concessional contributions are included because these contributions are subject to a concessional tax rate of 15% in your super fund.

 

It’s worth keeping in mind that only up to a maximum of $15,000 of eligible contributions can be withdrawn from any one year, even if you contribute more than $15,000.

 

So using the figures you’ve provided, if you only made concessional contributions, your maximum release amount would be $25,500 (plus associated earnings, e.g. $796) and would include the following amounts from each year:

  • Year 1 - $12,750 (85% of $15,000 eligible concessional contributions)
  • Year 2 - $12,750 (85% of $15,000 eligible concessional contributions)

Only $15,000 of the $20,000 contributed in year 2 is eligible – this is because there is a total limit of $30,000 of eligible contributions across all years.

 

If you also make non-concessional contributions (such as personal contributions which you don’t claim as tax deduction), then your maximum release amount is calculated as:

  • 100% of your eligible non-concessional contributions
  • 85% of your eligible concessional contributions, and
  • your associated earnings on both the eligible concessional and non-concessional contributions.

 

You can find more information on calculating the maximum release amount in LCR 2018/5 (paragraphs 18 and 21) and GN 2018/1.

 

Let us know if you have any further questions.

 

Thanks

1 REPLY 1

Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @Golsh 

 

If you only make concessional contributions (through salary sacrifice or claiming a deduction for personal contributions) towards the FHSS scheme, your maximum release amount will be calculated on:

  • 85% of your eligible concessional contributions, and
  • your associated earnings on your eligible concessional.

 

Only 85% of your concessional contributions are included because these contributions are subject to a concessional tax rate of 15% in your super fund.

 

It’s worth keeping in mind that only up to a maximum of $15,000 of eligible contributions can be withdrawn from any one year, even if you contribute more than $15,000.

 

So using the figures you’ve provided, if you only made concessional contributions, your maximum release amount would be $25,500 (plus associated earnings, e.g. $796) and would include the following amounts from each year:

  • Year 1 - $12,750 (85% of $15,000 eligible concessional contributions)
  • Year 2 - $12,750 (85% of $15,000 eligible concessional contributions)

Only $15,000 of the $20,000 contributed in year 2 is eligible – this is because there is a total limit of $30,000 of eligible contributions across all years.

 

If you also make non-concessional contributions (such as personal contributions which you don’t claim as tax deduction), then your maximum release amount is calculated as:

  • 100% of your eligible non-concessional contributions
  • 85% of your eligible concessional contributions, and
  • your associated earnings on both the eligible concessional and non-concessional contributions.

 

You can find more information on calculating the maximum release amount in LCR 2018/5 (paragraphs 18 and 21) and GN 2018/1.

 

Let us know if you have any further questions.

 

Thanks