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FHSS and Tax

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Good afternoon,

 

I'm trying to figure out whether or not to make FHSS contributions before or after tax, as the amount you withdraw at the end if you do pre-tax seems significantly smaller.

 

PRETAX

I'm looking at this website
https://www.ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme/

Specifically:

"Withholding tax

When we receive your released amounts, we will withhold tax that will be calculated at either:

  • your expected marginal tax rate, including Medicare levy, less a 30% offset"

 

Why bother doing pre-tax if you'll be taxed 15% from the start then be taxed at best another 34.5% at the end?

 

 

POST TAX

If I opt to do contributions post-tax, does that mean it will be included in my income the year I take it out? Because in that case I already paid 34.5% on the contributions before depositing, only to be taxed a further 34.5% (or likely more if it bumps me a bracket up) upon withdrawing if it is to be included in that years income.

 

And if it doesn't count towards the income that year, how do I go about getting my 30% tax offset if the tax has already been paid? Does the government just throw in the owed funds? Or do I foot that bill with my own super? - again not fair or worth it.

 

 

 

 

 

 

Why can't you just give us young people a break? Most of us cant get a job paying more than $55K (on-salary, not even hourly mind you) since the economy has barely any demand for new employees, and houses have inflated to exorbitant prices, unless you want to live in the middle of nowhere, but then there's no work available, and no income. A bit of a Catch-22. Not all of us are physically capable of doing the trades that pay hourly wages of $40 plus. It would take my partner and I at least 20 years to save the deposit for a small house when half our income is going to the tax man, a quarter to rent and the rest to the cost of living. And we don't even have any kids!

 

In 6 years I'll be hitting 30 at which point you'll tax me even more! And it's unlikely pay will improve much more than undercutting the cost of living. So I'll then be forced to pay 100s more in tax every week, or to a health insurance provider. Pick your poison.

 

Instead of taking so much tax why not rely on the toll roads that charge a ridiculous amount of money for such a short distance? Roads that are already paid for 10 times over and definitely don't need that kind of funding for maintenance.

 

Or better yet why not tax the politicians not only on their 6/7 digit figures, but also on all the free stuff they get throughout the year. Funny that, when you're rich people just GIVE you things, another catch-22.