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Re: First Home Super Saver Scheme - after tax contribution

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Newbie

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Replies 5

Hi,

 

Is "super after tax contribution" considered as voluntary contribution?

So I can withdraw it for my first home payment.

Let's say I contribute 15k on 01/07/2020, can I apply for 15k withdrawal right after that? 

Also, can I still claim a tax deduction for this 15k?

 

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ATO Certified Response

Devotee Super Specialist

Replies 4

Hi @MYHKAU,

 

If you were to make a voluntary contribution into your super, this would be considered an after-tax (non-concessional) super contribution and eligible for release under the current First Home Super Saver Scheme rules.

 

Once received by your super fund, you can request a determination and release of your funds at any time with the ATO. Whilst you can request multiple determinations, please be aware you can only apply for a release once. Therefore, it is important to check that the details in the determination are correct and that you do not want to make further contributions to count towards your FHSS maximum release amount.

 

You do have the option of claiming a tax deduction on your $15,000 voluntary contribution. However, please keep in mind, a 15% contribution tax is applied which turns your contribution into a concessional (pre-tax) contribution. This means, only 85% of your voluntary contribution is eligible to be released under the FHSS scheme.

 

You would not be eligible to claim a tax deduction after your funds have been released as you must confirm as part of your release application that you will not claim further tax deductions on the non-concessional contributions included in the determination.

 

For more information, you may wish to refer to the ATO’s First Home Super Saver scheme page.

 

Thanks,

Mark

5 REPLIES 5
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Most helpful response

ATO Certified Response

Devotee Super Specialist

Replies 4

Hi @MYHKAU,

 

If you were to make a voluntary contribution into your super, this would be considered an after-tax (non-concessional) super contribution and eligible for release under the current First Home Super Saver Scheme rules.

 

Once received by your super fund, you can request a determination and release of your funds at any time with the ATO. Whilst you can request multiple determinations, please be aware you can only apply for a release once. Therefore, it is important to check that the details in the determination are correct and that you do not want to make further contributions to count towards your FHSS maximum release amount.

 

You do have the option of claiming a tax deduction on your $15,000 voluntary contribution. However, please keep in mind, a 15% contribution tax is applied which turns your contribution into a concessional (pre-tax) contribution. This means, only 85% of your voluntary contribution is eligible to be released under the FHSS scheme.

 

You would not be eligible to claim a tax deduction after your funds have been released as you must confirm as part of your release application that you will not claim further tax deductions on the non-concessional contributions included in the determination.

 

For more information, you may wish to refer to the ATO’s First Home Super Saver scheme page.

 

Thanks,

Mark

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Replies 3

Hi @MYHKAU,

 

in reguard to your comment:

 

"You would not be eligible to claim a tax deduction after your funds have been released as you must confirm as part of your release application that you will not claim further tax deductions on the non-concessional contributions included in the determination".

 

Does this rule apply to personal consessional contributions as well as non-consessional contributions?

 

Thanks,

Will

 

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Devotee Super Specialist

Replies 2

Hi Will (@MYHKAU),

 

It is only possible to claim a tax deduction on eligible non-concessional contributions. Personal contributions which have been made concessionally, already receive the tax benefit of being made before-tax and are therefore not eligible for claiming a tax deduction.

 

For more information, you may be interested in QSuper’s Claiming a super tax deduction page or having a look at the ATO’s Claiming deductions for personal super contributions section.

 

Hope this helps.

 

Thanks,

Mark

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Replies 1

Hi Mark,

 

this information seems contradictory to the case study from Q super ('Sam') found at the link below. 

 

 https://qsuper.qld.gov.au/super/contributions/tax-deductions

 

Whereby a lodgement of a ‘Notice of intent to claim a tax deduction for personal contributions’ converts an after tax (non-consessional) contribution to a before tax (consessional contribution). The example states that the taxable income is reduced by the amount of the contribution made.   

 

Please clarify.

Thanks

Will

 

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Devotee Super Specialist

Replies 0

Hi @wjhibberd,

 

Thanks for your response.

 

The information I provided in my previous response was to confirm only non-concessional contributions are eligible when claiming a tax deduction. Personal contributions which have already been made concessionally (such as via salary sacrifice) are not eligible because they are already being made before-tax.

 

In the example you have linked, Sam has made her voluntary contribution after-tax and therefore is eligible to claim a tax deduction.

 

I hope I have managed to clarify this for you.

 

Thanks,

Mark