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Re: FHSS

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In order to advise my clients in the use and benefits of the FHSS I want to understand the tax benefits of them salary sacrificing into the scheme. What is the taxation benefit to them using the scheme if they have to add their withdrawals onto their annual return resulting in them having it taxed at their marginal rate less the 15% contribution tax. What am I missing here?

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Hi @Brokerse

 

Welcome to the ATO Community!

 

Seperate to the concessional tax treatment within super (as you mentioned above); released FHSS amounts are included in the tax return for the financial year in question - however the tax payable on this assessable amount will receive a 30% tax offset. Check out the ' witholding tax' header here for more info.

 

The FHSS may not be for everyone though, so that's one for you to discuss with your clients. I hope I didn't confuse your question, and I hope this helps.

 

(Disclaimer - I'm an ATO employee. I'm here voluntarily trying to save ppl a phone call or two).

 

 

 

1 REPLY
Highlighted

Best answer

ATO Certified

Devotee

Replies 0

Hi @Brokerse

 

Welcome to the ATO Community!

 

Seperate to the concessional tax treatment within super (as you mentioned above); released FHSS amounts are included in the tax return for the financial year in question - however the tax payable on this assessable amount will receive a 30% tax offset. Check out the ' witholding tax' header here for more info.

 

The FHSS may not be for everyone though, so that's one for you to discuss with your clients. I hope I didn't confuse your question, and I hope this helps.

 

(Disclaimer - I'm an ATO employee. I'm here voluntarily trying to save ppl a phone call or two).

 

 

 

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