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Hi

 

FHSS release for construction: Assuming funds are already in super account

Release of funds say January 2020, buying land with intention to build within 12 months

 

Is the January release the one and only release possible? i.e. if it takes 12 months to get to the build contract could i put further funds in to the fund (say june 30, 2020) and thereafter release again.. Or would the January 2020 release be the one and only. Therefore any subsequent super contribution not available?

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ATO Certified

TaxTime Support

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Hi @Yengeh

 

Welcome to our Community.

 

You are only able to apply for a first home super saver (FHSS) release request once. If you apply for a release in January 2020, any additional contributions made after that won't be accessible for FHSS scheme purposes.

 

You can read more about this by checking out the applying to release your savings section of the first home super saver scheme page on our website. 

 

Depending on your circumstances, you may be able to access more super but you would need to meet another condition of release such as severe financial hardship.

 

You can read more about the different conditions of release and when you can access your super on our website.

 

If you are hoping to make the FHSS maximum release amount as large as possible, you will need to make your contributions prior to submitting a FHSS determination request and signing the land sale contract (make sure you submit the determination request first).

 

Of course you will also need to keep in mind that you can only apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in the FHSS maximum release amount.

 

Hope this helps.

 

Thanks,

 

ChrisR

3 REPLIES 3

Best answer

ATO Certified

TaxTime Support

Replies 2

Hi @Yengeh

 

Welcome to our Community.

 

You are only able to apply for a first home super saver (FHSS) release request once. If you apply for a release in January 2020, any additional contributions made after that won't be accessible for FHSS scheme purposes.

 

You can read more about this by checking out the applying to release your savings section of the first home super saver scheme page on our website. 

 

Depending on your circumstances, you may be able to access more super but you would need to meet another condition of release such as severe financial hardship.

 

You can read more about the different conditions of release and when you can access your super on our website.

 

If you are hoping to make the FHSS maximum release amount as large as possible, you will need to make your contributions prior to submitting a FHSS determination request and signing the land sale contract (make sure you submit the determination request first).

 

Of course you will also need to keep in mind that you can only apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in the FHSS maximum release amount.

 

Hope this helps.

 

Thanks,

 

ChrisR

Newbie

Replies 1

Thanks Chris

 

Makes sense thank you... Only clarification would be 

 

1) the below scenario assumes the initial FHSS release was not paid back (it is clear now that only one release is allowed)

 

2) what if the first release was paid back? Does that allow a subsequent release. I see the pay back of the FHSS release would need to be non-conessional. Does that reset the clock; so to speak

 

ta

ATO Certified

TaxTime Support

Replies 0

Hi @Yengeh

 

Thanks for your reply.

 

You are only able to apply for a first home super saver (FHSS) release request once, regardless of what is done with the money. If you decide to recontribute the assessable FHSS released amount into your fund as a non-concessional contribution, you don't reset the clock.

 

The reason why you have the option to recontribute the assessable FHSS released amount is to avoid paying the 20% FHSS tax when you don't enter a contract to purchase or construct a home within the required timeframe. It doesn't enable a future FHSS release.

 

For more information about the FHSS tax and how long you have to sign a contract, check out the after your savings have been released section of the first home super saver scheme on our website.

 

As previously mentioned, if you are hoping to make the FHSS maximum release amount as large as possible, you may need to make some extra contributions prior to submitting a FHSS determination request and signing the land sale contract.

 

If you are unable to make those extra contributions until later in the financial year, perhaps you could talk to the seller of the land to explore your options. By delaying the signing of the land purchase contract, you will have more time to make voluntary contributions and submit your FHSS determination and release requests.

 

Hope this helps.

 

Thanks,

 

ChrisR

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