Do concessional contributions above $25k count towards FHSS

[#1]

My compulsory employer super contributions are around $12k per year so I cannot salary sacrifice $15k in a year and stay within the general concessional contribution cap of $25k.

However, I have unused concessional cap amount of about $13k accrued from 2018-19 that carries forward. Is it ok to use some of this unused amount for contributions towards the FHSS scheme? For example, if I salary sacrifice $15k this year (using $2k from the unused amount from 2018-19), and do the same in 2020-21, can I withdraw $30k (plus associated earnings) under the FHSS scheme? 

Hope that makes sense. I've laid out the details year by year below.

2018-19

• General concessional contribution cap: $25k
• Concessional contributions made
  • Compulsory employer contributions: $12k
  • Other: $0

2019-20

• General concessional contribution cap: $25k
• Total unused available cap accrued: $13k
• Concessional contributions made
  • Compulsory employer contributions: $12k
  • Salary sacrifice contributions: $15k

2020-21

• General concessional contribution cap: $25k (assuming no change)
• Total unused available cap accrued: $11k
• Concessional contributions made
  • Compulsory employer contributions: $12k
  • Salary sacrifice contributions: $15k

[#2]

Hi @goteDeath,

We will check into this one and get back to you.

KylieS

[#3 · Accepted solution]

@goteDeath under the first home super saver (FHSS) scheme, you would be able to apply for the release of your $15,000 salary sacrifice contributions (2019-20) and $15,000 salary sacrifice contributions (2020-21) as these amounts total the $30,000 limit across all years. You will also receive an amount of earnings that relate to those contributions. You are unable to request the release of amounts for the 2018-19 year as no eligible voluntary contributions have been made.

[#4]

Hi @NicolaATO 

I wanted to confirm that the example provided by @goteDeath complies with the rules for the First Home Super Saver Scheme? I want to ensure that I can withdraw the full 30k (15 k over two financial years) if utilising the carry forward unused concessional cap when making contributions for the FHSS. 

Thanks! 

[#5]

Hi @TaxQuest,

We haven't forgotten you! We have contacted a technical team to get you the most accurate answer that we can, and we will get back to you soon. Your patience so far is appreciated.

[#6]

Hi Josh and Nicola!

I also have the same question - I want to maximise my ability to contribute $15k per year, but am worried about exceeding the $25k per year cap for concessional contributions (my employer contribtues 17% so if i contributed $15k it would be over the $25k cap) and I would be relying on my ability to have "carried foward" unused concessional caps from previous years. I don't want to make contributions that I then can't then access under the FHSSS.

Can you please confirm that the above answers are correct?

Thank you!

Anita

@JoshH @NicolaATO 

[#7]

Hi @TaxQuest and @anitasydney 

First of all, thanks for your patience @TaxQuest while we did some research for you.

We can confirm that @goteDeath's example complies with the FHSS scheme requirements and that our previous answer was correct, as long as you're eligible to carry-forward your unused concessional contributions.

There are two carry-forward conditions that must be met. One is that your total super balance was less than $500,000 at the end of 30 June in the previous financial year. The other is that your concessional contributions exceeded your general concessional contributions cap (currently $25,000). The second condition is met in the example.

Using the amounts and years in the example, if the total super balance was less than $500,000 at the end of 30 June 2019 and 30 June 2020, both $15,000 salary sacrificed contributions can be included in the FHSS release. This is because the 2018-19 unused cap can be used resulting in no excess concessional contributions in 2019-20 and 2020-21.

If the total super balance was $500,000 or more at the end of 30 June 2019 and 30 June 2020, our FHSS scheme guidance note GN 2018/1 states that excess concessional (or non-concessional) contributions aren't eligible for release under the FHSS scheme. This means that only some of the concessional contributions can be included.