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First Home Super Saver Scheme

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Newbie

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Hi,

Quick question re FHSSS. I understand withdrawls can be made from July 1 of this year. If I were to sign a contract for a new off-the-plan apartment between now and then, but only have to make a deposit, would I be eligible to use the FHSSS from July 1 to put towards the outstanding balance? 

Thanks,
Tom

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ATO Certified

Enthusiast

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Hi Tom

 

I believe a person has to withdraw the funds from super under the FHSSS prior to signing a contract to buy or build a property. 

 

See here

https://www.ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme/

 

 

When you are ready, you need to apply to the Commissioner of Taxation for a FHSS determination and a release of your funds. You will be able to apply from 1 July 2018. You need to apply using the approved form that will be available on our website.

Note: You must have received released amounts from the FHSS before you sign a contract to purchase or construct residential premises.

 

cheers

 

Brooke 

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ATO Certified

Enthusiast

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Hi Tom

 

I believe a person has to withdraw the funds from super under the FHSSS prior to signing a contract to buy or build a property. 

 

See here

https://www.ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme/

 

 

When you are ready, you need to apply to the Commissioner of Taxation for a FHSS determination and a release of your funds. You will be able to apply from 1 July 2018. You need to apply using the approved form that will be available on our website.

Note: You must have received released amounts from the FHSS before you sign a contract to purchase or construct residential premises.

 

cheers

 

Brooke 

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Community Support

Replies 11

Hi @tjop176,

 

Welcome to our Community!

 

@BrookeL is right - once your savings have been released, you have up to 12 months to sign a contract to purchase or construct a home, but unfortunately you cannot benefit from this scheme if you purchase or enter into a contract to purchase property before the commencement date of this scheme. From 1 July 2018 you can then apply to release your contributions, along with associated earnings, to help you purchase your first home. You must be 18 years or over to apply for the release of these amounts.

 

If you have further questions you can call us on 13 10 20 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks.

 

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I'm new

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Hi there

 

In your response you mention that you cannot benefit from this scheme if you enter into a contract before the commencement date of this scheme - please can you confirm what is the commencement date of the scheme? 

 

 

Regards

Daniel

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Hi @djawright,

 

Welcome to our Community!

 

If you're eligible to make contributions towards the FHSS scheme you can start making payments into your super fun from 1 July 2017. From 1 July 2018 you can apply for a determination from The Commissioner of Taxation that will tell you:

  • your maximum FHSS release amount
  • associated earnings
  • tax that needs to be withheld.

When you're ready to have the funds release you can apply for a release of funds. You can only apply for a release of funds once, and you must have received the released amounts from the FHSS before you sign a contract to purchase or construct residential premises. So you can start making contributions now (if you're eligible), however you can't apply for a release or enter into a contract to use the funds until after 1 July 2018.

 

If you have further questions, you can phone us on 13 10 20 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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It is totally unpractical to withdraw your funds from 1 July 2018 & then find your new home & negotiate the sale (usually will need to attend several auctions these days before you are given the privilege of finalising the sale for your new home). This can take 6 - 12 months + & I think it's irrelevant whether or not people withdraw funds before or after signing the contract. As long as they withdraw before settlement it's all the same.

 

I have a question if someone could please assist.

I have signed up to this plan & my employer sends my super off each fortnight as per my pay periods. This then goes to a holding institution before being sent to my super provider & as a result my super payments are not consistent - ie a lump sum might be sent off after 2-3 months.

 

How does the FHSSS acount for this? Does the FHSSS assess it by the total funds received by your super provider within the FY or is it worked out on 9.5% of gross income for that FY?

 

Also, if you happen to exceed the $25k total super contributions in the FY, are you able to make a withdrawel claim?

Thanks for your help.

 

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Community Support

Replies 7

Hi @stevej,

 

Welcome to our Community!

 

Eligible voluntary contributions made to your super fund from 1 July 2017 onwards can count towards the First Home Super Saver Scheme (FHSS). Contributions must be;

  • voluntary concessional (before-tax) contributions, and/or
  • voluntary non-concessional (after-tax) contributions.

Under the FHSS scheme, you can only make voluntary contributions up to a maximum of $15,000 from any one financial year and $30,000 in total across all years. If you contribute more than $15,000 in any one financial year, the excess amount will not be released. You may also wish to speak with your fund to ensure you are aware of the super contribution caps.

 

You can find more information on the FHSS on our website, or alternatively you can phone us on 13 10 20 between 8am - 6pm, Monday to Friday to speak with an operator.

 

Thanks, JodieH.

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Newbie

Replies 6

Hi everyone,

 

 Currently waiting 32 business days for the funds to be released. super fund transferred the FHSS 2 months ago. I've contacted the ATO office several times and they say there's a high volume of applications and that there is a big backlog, is this something that we all need to be aware of, is the "within 25 business days" an unrealistic expectation right now?

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Initiate

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sorry to hear about your situation, but the reality is that no one cares whether or not the FHSS works or not. Rather to the contrary the polititians want the property market and the economy to keep rising. But everyone seems to screams panic when the market drops a few percent even though it's just gone up 70% over the past 5 years (in Sydney).

 

They don't want to solve the problem, they just want to be perceived as helping when really they're not. The FHSS is totally unpractical as the property market can change quickly & the right house might come along only once every year or 2 or 3. You need to keep your money in super (FHSS) to keep saving & building on your tax benefit to maximise the benefit of the scheme (however little benefit it provides), and to be able to shop around for the right home. If you are lucky enough to find the right home & sign a contract you should then be able to request a release of the funds (which you should be able to draw down on within 2 weeks). 

 

Under the scheme they expect that you should request a release of FHSS & wait 2 months to receive the funds before buying the perfect home in perfect timing is nothing short of a fairytail. But if that right home doesn't come by within 12 months the ATO will request a please explain from you. Clearly none of the polititians will be needing to use the FHSS nor do they care how unhelpful it really is.

 

If the ATO have such a backlog, i wonder how many FHSS fund releases they have completed & out of those how many successful home purchases there have been so far under the FHSS. Can someone tell me that?

 

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Community Support

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Hi @ShaunP,

 

Thanks for taking the time to write to us.

 

The “25 business days” is an approximate timeframe; it may take more or less than this to process your FHSS release.

 

If you’re dissatisfied with our processes, you can lodge a formal complaint.

 

When you lodge a complaint, a complaints resolver will be allocated to your case and will aim to contact you within 3 working days to discuss your case.

 

Thanks, NicM.