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Hi there,

 

I have a few questions about the FHSSS.

 

Only recently, was it advertised on the information page that Commonwealth debts will be deducted from the assessed releasable amount. My situation is that I am behind in my HECS repayments because my employer had not correctly declared that HECS should be deducted from my salary. Can you please confirm that this HECS debt will be deducted from any assessed released amount, even though 1) I am already being charged interest on that debt through my HECS indexation, and 2) a payment plan is in progress to reduce that debt?

 

I have already contributed $15,000 for financial year 17/18. For financial year 18/19, I will have made $15,000 in contributions by November 2018. Is it correct that I will not be able to release the $30,000 until my tax return is completed for the 18/19 financial year in June 2019? I ask this because I plan to buy in December this year, but if I am unable to release the $30,000 in December, I may as well not contribute anything this year.

 

Cheers,

 

Dan

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Devotee

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 Hi @danrowley

 

Welcome to our Community!

 

Your question): Only recently, was it advertised on the information page that ‘Commonwealth debts’ will be deducted from the assessed releasable amount. My situation is that I am behind in my HECS repayments because my employer had not correctly declared that HECS should be deducted from my salary. Can you please confirm that this HECS debt will be deducted from any assessed released amount?

 

When you withdraw contributions under the FHSS scheme they will not be part of your HECS repayment income in the year you request the withdrawal of your super under the FHSS.

 

FHSS released amounts will impact Commonwealth Debt such as Centrelink, child support, ATO income tax account (ITA) debts, or ATO integrated client account (CAC) debts.

 

However, If you are contributing to your super via sal sac, those contributions aka 'reportable employer super contributions' can increase your HECS repayment income for the year/s you make those contributions (not when you withdraw them).

 

Your question): I have already contributed $15,000 for financial year 17/18. For financial year 18/19, I will have made $15,000 in contributions by November 2018. Is it correct that I will not be able to release the $30,000 until my tax return is completed for the 18/19 financial year in June 2019? I ask this because I plan to buy in December this year, but if I am unable to release the $30,000 in December, I may as well not contribute anything this year.

 

You don’t need to lodge a tax return for 18-19 before you apply for a FHSS release. Keep in mind it will take approximately 25 business days for your fund to release your money and for the ATO to pay it to you. You must include the assessable FHSS released amount shown on your payment summary as assessable income in your tax return when later that year (at tax time).

 

If the 30K contributed across multiple years is non concessional, it would likely be $30k PLUS associated earnings you could withdraw. 

 

If the 30K contributed across multiple years is concessional (i.e sal sac or deduction claimed for personal contributions), it would likely be 85% of eligible concessional contributions PLUS associated earnings you could withdraw.  

 

I recognise you’ve already read the page Dan, but for others who haven’t, you can find FHSS information on the website. For tailored help you can phone on 13 10 20 between 8am - 6pm, Monday to Friday AEST to speak with an ATO operator. 

 

Hope this helps!

 

(Disclaimer - ATO employee helping voluntarily)

1 REPLY 1

Best answer

Devotee

Replies 0

 Hi @danrowley

 

Welcome to our Community!

 

Your question): Only recently, was it advertised on the information page that ‘Commonwealth debts’ will be deducted from the assessed releasable amount. My situation is that I am behind in my HECS repayments because my employer had not correctly declared that HECS should be deducted from my salary. Can you please confirm that this HECS debt will be deducted from any assessed released amount?

 

When you withdraw contributions under the FHSS scheme they will not be part of your HECS repayment income in the year you request the withdrawal of your super under the FHSS.

 

FHSS released amounts will impact Commonwealth Debt such as Centrelink, child support, ATO income tax account (ITA) debts, or ATO integrated client account (CAC) debts.

 

However, If you are contributing to your super via sal sac, those contributions aka 'reportable employer super contributions' can increase your HECS repayment income for the year/s you make those contributions (not when you withdraw them).

 

Your question): I have already contributed $15,000 for financial year 17/18. For financial year 18/19, I will have made $15,000 in contributions by November 2018. Is it correct that I will not be able to release the $30,000 until my tax return is completed for the 18/19 financial year in June 2019? I ask this because I plan to buy in December this year, but if I am unable to release the $30,000 in December, I may as well not contribute anything this year.

 

You don’t need to lodge a tax return for 18-19 before you apply for a FHSS release. Keep in mind it will take approximately 25 business days for your fund to release your money and for the ATO to pay it to you. You must include the assessable FHSS released amount shown on your payment summary as assessable income in your tax return when later that year (at tax time).

 

If the 30K contributed across multiple years is non concessional, it would likely be $30k PLUS associated earnings you could withdraw. 

 

If the 30K contributed across multiple years is concessional (i.e sal sac or deduction claimed for personal contributions), it would likely be 85% of eligible concessional contributions PLUS associated earnings you could withdraw.  

 

I recognise you’ve already read the page Dan, but for others who haven’t, you can find FHSS information on the website. For tailored help you can phone on 13 10 20 between 8am - 6pm, Monday to Friday AEST to speak with an ATO operator. 

 

Hope this helps!

 

(Disclaimer - ATO employee helping voluntarily)

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