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FHSS Pre & Post tax contribution confusion

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I am a little confused by the FHSS scheme and have not had much luck getting answers from the ATO over the phone. 

Hypothetically, this financial year I have Salary Sacrificed $5000 into my super. I am now considering depositing $10,000 of post tax income before requesting determination in 4 weeks. How is my determination calculated? Am I receiving any benefits by depositing the additional $10,000 today? 

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Hi @josh33

 

Thanks for your post.

 

Assuming that you do end up making a $10,000 voluntary non-concessional contribution, when you submit your FHSS determination request, the resulting determination will look like this:

  • Concessional contributions: $4,250 ($5,000 x 85%)
  • Non-concessional contributions: $10,000 ($10,000 x 100%)
  • Total associated earnings: $100 (amount chosen for illustrative purposes only)
  • Estimated maximum withholding tax: $739 ($4,350 x 17%)
  • Maximum release amount: $14,350

 

For more information about how we calculate the FHSS maximum release amount, check out the FHSS scheme page on our website.

 

The associated earnings may be more or less depending on when the salary sacrificed contributions were made. The associated earnings that will be calculated on your $10,000 contribution will be low due to the short timeframe.

 

They are calculated using a deemed rate of return that is based on the 90-day Bank Bill rate plus three percentage points (shortfall interest charge rate).

 

If you would like to check out some examples of how it all gets calculated, click on the GN 2018/1 link at the bottom of the FHSS scheme page. Check out the FHSS maximum release amount example for Carolyn.

 

Hope this helps.

 

Thanks, ChrisR

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Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @josh33

 

Thanks for your post.

 

Assuming that you do end up making a $10,000 voluntary non-concessional contribution, when you submit your FHSS determination request, the resulting determination will look like this:

  • Concessional contributions: $4,250 ($5,000 x 85%)
  • Non-concessional contributions: $10,000 ($10,000 x 100%)
  • Total associated earnings: $100 (amount chosen for illustrative purposes only)
  • Estimated maximum withholding tax: $739 ($4,350 x 17%)
  • Maximum release amount: $14,350

 

For more information about how we calculate the FHSS maximum release amount, check out the FHSS scheme page on our website.

 

The associated earnings may be more or less depending on when the salary sacrificed contributions were made. The associated earnings that will be calculated on your $10,000 contribution will be low due to the short timeframe.

 

They are calculated using a deemed rate of return that is based on the 90-day Bank Bill rate plus three percentage points (shortfall interest charge rate).

 

If you would like to check out some examples of how it all gets calculated, click on the GN 2018/1 link at the bottom of the FHSS scheme page. Check out the FHSS maximum release amount example for Carolyn.

 

Hope this helps.

 

Thanks, ChrisR