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First Home Super Saver Scheme

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Wife made a commitment doing the FHSS scheme for 1 year and saved up about 27000 in the FHSS fund. 

When she requested for a release, we got around 13000 only and since has been told the release is only once. 

So here where are petrified that we actually have lost rest of the money while we were working our arse off to save for our first home.  

Not understanding how ATO is blaming the legislation for it and in their eyes its only and only one way of doing things.

Its like ,1 mistake = Game over kind of thing which is inhuman. 

I really hope there is a way we could get back the hard earned money to buy our first home. 

Any help in this topic will be dearly appreciated. 

Ash

 

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Hi @Ash2210

 

Thanks for your post.

 

Whenever we get a question about the FHSS scheme, we recommend that first home buyers check out the first home super saver scheme page on our website to find out how it works. To be able to take full advantage of the scheme, there are a number of requirements that must be adhered to.

 

There are a couple of possible reasons as to why your wife was only able to access $13,000 from their super fund despite contributing $27,000.

 

One could be due to the $15,000 limit. You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your FHSS release amount. Only 85% of your voluntary concessional contributions can be withdrawn. $15,000 x 85% = $12,750 (plus associated earnings).

 

Another reason could simply be that your wife didn't detail all of their $27,000 voluntary contributions when they requested their FHSS determination resulting in a lower than expected maximum FHSS release amount.

 

While your wife could have requested another FHSS determination to correct the previous one, they could only request one FHSS release. In turn, any voluntary contributions that weren't included can no longer be accessed via the scheme.

 

If your wife would like to access more from their super fund, they will need to meet a condition of release which you can read about on our website.

 

Thanks, ChrisR

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ATO Certified Response

Community Moderator

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Hi @Ash2210

 

Thanks for your post.

 

Whenever we get a question about the FHSS scheme, we recommend that first home buyers check out the first home super saver scheme page on our website to find out how it works. To be able to take full advantage of the scheme, there are a number of requirements that must be adhered to.

 

There are a couple of possible reasons as to why your wife was only able to access $13,000 from their super fund despite contributing $27,000.

 

One could be due to the $15,000 limit. You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your FHSS release amount. Only 85% of your voluntary concessional contributions can be withdrawn. $15,000 x 85% = $12,750 (plus associated earnings).

 

Another reason could simply be that your wife didn't detail all of their $27,000 voluntary contributions when they requested their FHSS determination resulting in a lower than expected maximum FHSS release amount.

 

While your wife could have requested another FHSS determination to correct the previous one, they could only request one FHSS release. In turn, any voluntary contributions that weren't included can no longer be accessed via the scheme.

 

If your wife would like to access more from their super fund, they will need to meet a condition of release which you can read about on our website.

 

Thanks, ChrisR

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Hi there,

 

I have a question in regard to this part of your response:

 

One could be due to the $15,000 limit. You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your FHSS release amount. Only 85% of your voluntary concessional contributions can be withdrawn. $15,000 x 85% = $12,750 (plus associated earnings).

 

The FHSS ATO website states "You can apply to have a maximum of $15,000 of your voluntary contributions from any one financial year included in your eligible contributions to be released under the FHSS scheme."

 

I contributed $17,650 in one financial year, so that I would be able to withdraw the full $15,000 when purchasing a house (as 85% of 17,650 is 15,000). However my determination is saying I can only withdraw $12,750 (plus associated earnings) as in the example above. Have I misinterpreted the limit?

 

Thanks in advance!

Community Moderator

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Hi @taxhelpplease

 

Thanks for joining the conversation and for your patience.

 

You have misinterpreted the limit. How much of your $15,000 voluntary contributions you can have released depends on whether the contributions are concessional, e.g. salary sacrificed, or non-concessional, e.g. personal contributions with no tax deductions claimed.

 

For more information about how you can save in super and the eligible contributions you can access via the FHSS scheme, have a look at our website.

 

The yearly contributions limit is $15,000. If the contributions are non-concessional, you can access 100% of $15,000. If the contributions are concessional, you can access 85% of $15,000 which is $12,750. This is because of the 15% tax your super fund applies to the concessional contributions.

 

From what you have advised, the maximum release amount in your FHSS determination is correct.

 

Good luck with your first home build or purchase.