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Re: Salary Sacrifice

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Hi there. I’m doing the Barefoot thing I want to make pre-tax consessional contributions to my super for the purpose of the FHSSS.

I’ve already bumped up my super contributions to 15% by salary sacrificing an extra 5.5% ($150) of my fortnightly pay, but when I enquired to my work about adding more to my super for the FHSSS, my work’s payroll team said they don’t do that.

In that case, to contribute to the FHSSS, would I then just increase my pre-tax confessional salary sacrifice amount to include both the 5.5% ($150) & say an additional $200 for the FHSSS, making a pre-tax salary sacrifice total of $350 per pay period?

Then in a few years when I buy my first home, will I just need to apply for a NOITC / release request?

Thanks in advance.
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Hi @MR22 

 

Your Question) I’ve already bumped up my super contributions to 15% by salary sacrificing an extra 5.5% ($150) of my fortnightly pay, but when I enquired to my work about adding more to my super for the FHSSS, my work’s payroll team said they don’t do that.

My 2 cents) You just need to make sure your contributions are eligible for FHSSS – don’t stress about telling your payroll about FHSSS specifically, as you may be met with shrugged shoulders. Just make sure you have a robust super salary sacrifice agreement in place with your employer. There’s no limit to salary sacrifice amounts, however you should still consider/be aware of your super caps, and the fact that both parties would need to agree to the salary sacrifice for this to work.

 

Your Question) In that case, to contribute to the FHSSS, would I then just increase my pre-tax confessional salary sacrifice amount to include both the 5.5% ($150) & say an additional $200 for the FHSSS, making a pre-tax salary sacrifice total of $350 per pay period?

My 2 cents) I’m not qualified to give financial advice, but it sounds like you’ve got a plan to contribute/increase your  voluntary concessional contributions. You don't need to note these particular contributions as 'FHSSS' with your employer or with your fund when they're made - rather, people who want to use the FHSS in future just need to make sure their contributions to super are ‘eligible’ contributions for the purposes of FHSS. ‘Salary sacrifice’ is one of these eligible contributions types, and other types and considerations are found under the ‘contributions you can make’ heading here.

 

Your Question) in a few years when I buy my first home, will I just need to apply for a NOITC / release request?

 

My 2 cents) To withdraw your voluntary super contributions under the FHSS scheme in the future, you’ll go online (using your myGov account linked to the ATO) and request what is called a ‘FHSS determination’. You can then decide to apply for a release of your amounts if you are ready to purchase your home. Read down the page from this link. Note: as the web content suggests, you should sort this application out before you before you sign a contract to purchase or construct residential premises.

 

If you need further help - contact the ATO on 13 10 20 between 8am and 6pm M-F.

 

Cheers

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Devotee

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Hi @MR22 

 

Your Question) I’ve already bumped up my super contributions to 15% by salary sacrificing an extra 5.5% ($150) of my fortnightly pay, but when I enquired to my work about adding more to my super for the FHSSS, my work’s payroll team said they don’t do that.

My 2 cents) You just need to make sure your contributions are eligible for FHSSS – don’t stress about telling your payroll about FHSSS specifically, as you may be met with shrugged shoulders. Just make sure you have a robust super salary sacrifice agreement in place with your employer. There’s no limit to salary sacrifice amounts, however you should still consider/be aware of your super caps, and the fact that both parties would need to agree to the salary sacrifice for this to work.

 

Your Question) In that case, to contribute to the FHSSS, would I then just increase my pre-tax confessional salary sacrifice amount to include both the 5.5% ($150) & say an additional $200 for the FHSSS, making a pre-tax salary sacrifice total of $350 per pay period?

My 2 cents) I’m not qualified to give financial advice, but it sounds like you’ve got a plan to contribute/increase your  voluntary concessional contributions. You don't need to note these particular contributions as 'FHSSS' with your employer or with your fund when they're made - rather, people who want to use the FHSS in future just need to make sure their contributions to super are ‘eligible’ contributions for the purposes of FHSS. ‘Salary sacrifice’ is one of these eligible contributions types, and other types and considerations are found under the ‘contributions you can make’ heading here.

 

Your Question) in a few years when I buy my first home, will I just need to apply for a NOITC / release request?

 

My 2 cents) To withdraw your voluntary super contributions under the FHSS scheme in the future, you’ll go online (using your myGov account linked to the ATO) and request what is called a ‘FHSS determination’. You can then decide to apply for a release of your amounts if you are ready to purchase your home. Read down the page from this link. Note: as the web content suggests, you should sort this application out before you before you sign a contract to purchase or construct residential premises.

 

If you need further help - contact the ATO on 13 10 20 between 8am and 6pm M-F.

 

Cheers