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Hullo, 

I have been contributing to the FHSSS for the past 6months or so while working for my Australian company. I've now accepted a job to work for a New Zealand company. My questions around this are:

> how will my FHSSS contributions be affected by moving overseas and earning a foreign income?

> does it matter if no contributions are made over the next few years / is there a cap on time? e.g. I come back to AU in 5 years and carry on with the Scheme? 

> If I can withdraw the contributions to date, I assume the additional Tax will be deducted from that withdrawal?

 

I'm unsure when I will be returning to Australia at this stage. 

 

Many thanks 

G

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Hi @glaw,

 

Welcome to the Community.

 

And apologies for the delay in our response. 

 

We checked this out with our technical experts and generally speaking, your contributions towards the FHSS scheme aren’t affected by you moving overseas, if they remain in your Australian super fund.

 

However if you’re looking to transfer your Australian super balance to a New Zealand Kiwisaver account under the Trans-Tasman retirement savings portability scheme, there is something you’ll need to keep in mind.

 

If you were to return to Australia at a later date and transfer your super from New Zealand back into an Australian super fund, then the following amounts won’t be eligible contributions for the FHSS scheme:

  • Australian-sourced amounts, and
  • returning New Zealand-sourced amounts.

So as an example, you move to New Zealand and you transferred your Australian super fund to a Kiwisaver (we’ll say the balance of your Australian super was $10,000).

 

Two years later you decide to move back to Australia and your Kiwisaver balance is now $15,000. You transfer your Kiwisaver into your new Australian super fund – your transfer is made up of:

  • $10,000 Australian-sourced amount, and
  • $5,000 contributions and earnings made into your Kiwisaver while you were living in New Zealand.

As the Australian-sourced amount isn't an eligible contribution for the FHSS scheme, in this scenario, only $5,000 of the transferred $15,000 would be an eligible contribution for the purposes of the FHSS scheme.

 

When it comes to making contributions towards the scheme, there is no time frame over which you have to contribute. How often you choose to contribute towards the scheme is up to you. There is also no time limit for you to request a FHSS scheme determination or release.

 

If you’re looking to release your super using the scheme, any assessable FHSS released amount you received (your concessional contributions and associated earnings) is subject to withholding tax. Your assessable FHSS release amount is assessable income and must be included on your income tax return.

 

If you release your FHSS amounts and don’t sign a contract to buy or build a home in the required time frame or recontribute the amount into your super, you’ll be liable for the FHSS tax. The FHSS tax is in addition to the withholding tax that applied to your assessable FHSS released amounts.

 

If you don’t access your super using the FHSS scheme, then you'll need to meet a condition of release to withdraw your super.

 

You can find more information of the FHSS scheme on our website and in GN 2018/1.

 

Thanks, NicM.

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Best answer

ATO Certified

Moderator

Replies 0

Hi @glaw,

 

Welcome to the Community.

 

And apologies for the delay in our response. 

 

We checked this out with our technical experts and generally speaking, your contributions towards the FHSS scheme aren’t affected by you moving overseas, if they remain in your Australian super fund.

 

However if you’re looking to transfer your Australian super balance to a New Zealand Kiwisaver account under the Trans-Tasman retirement savings portability scheme, there is something you’ll need to keep in mind.

 

If you were to return to Australia at a later date and transfer your super from New Zealand back into an Australian super fund, then the following amounts won’t be eligible contributions for the FHSS scheme:

  • Australian-sourced amounts, and
  • returning New Zealand-sourced amounts.

So as an example, you move to New Zealand and you transferred your Australian super fund to a Kiwisaver (we’ll say the balance of your Australian super was $10,000).

 

Two years later you decide to move back to Australia and your Kiwisaver balance is now $15,000. You transfer your Kiwisaver into your new Australian super fund – your transfer is made up of:

  • $10,000 Australian-sourced amount, and
  • $5,000 contributions and earnings made into your Kiwisaver while you were living in New Zealand.

As the Australian-sourced amount isn't an eligible contribution for the FHSS scheme, in this scenario, only $5,000 of the transferred $15,000 would be an eligible contribution for the purposes of the FHSS scheme.

 

When it comes to making contributions towards the scheme, there is no time frame over which you have to contribute. How often you choose to contribute towards the scheme is up to you. There is also no time limit for you to request a FHSS scheme determination or release.

 

If you’re looking to release your super using the scheme, any assessable FHSS released amount you received (your concessional contributions and associated earnings) is subject to withholding tax. Your assessable FHSS release amount is assessable income and must be included on your income tax return.

 

If you release your FHSS amounts and don’t sign a contract to buy or build a home in the required time frame or recontribute the amount into your super, you’ll be liable for the FHSS tax. The FHSS tax is in addition to the withholding tax that applied to your assessable FHSS released amounts.

 

If you don’t access your super using the FHSS scheme, then you'll need to meet a condition of release to withdraw your super.

 

You can find more information of the FHSS scheme on our website and in GN 2018/1.

 

Thanks, NicM.

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