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FHSS scheme released amount & proceed from selling employee share scheme

Newbie

Views 735

Replies 5

Hi,

as we are approaching EOFY, I just want to check whether the below 3 items will form part of medical levy surchage income basis calculation.

- Released amount from FHSS

- Amount that I vulentary put into my super for FHSS purpose

- Proceed from selling shares gained through employee share sheme

My understanding is the released amount from FHSS will not contribute to the income that is used to calculate whehther I exceed the threshold for medical levy surcharge, but still want to confirm. The 2nd and 3rd items I really have no idea.

Would be great if someone can help!

Thanks in advance,

Lily

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 4

Hi @amiya1672

 

Thanks for your post.

 

You are correct about the first one. Your income for Medicare levy surcharge (MLS) purposes doesn't include any assessable First Home Super Saver (FHSS) released amount for the income year under the FHSS scheme. Refer to our website for more information.

 

You can make the following existing types of contributions towards the FHSS scheme:

  • voluntary concessional contributions – including salary sacrifice amounts or contributions for which a tax deduction has been claimed, these are usually taxed at 15% in your fund
  • voluntary non-concessional contributions that you have made – these are made after tax or if a tax deduction has not been claimed.

 

For more information about how you can save in super for your first home using the FHSS scheme, have a look at our website.

 

Voluntary concessional contributions are also known as reportable super contributions. Your income for MLS purposes includes these contributions. Voluntary non-concessional contributions aren't part of your income for MLS purposes.

 

If the sale of employee share scheme (ESS) shares results in a capital gain, the net capital gain forms part of your taxable income. Your income for MLS purposes includes your taxable income.

 

For more information about ESS and capital gains tax, check out our website.

 

Hope this helps.

 

Thanks, Chris

5 REPLIES 5

Most helpful response

Community Moderator

Replies 4

Hi @amiya1672

 

Thanks for your post.

 

You are correct about the first one. Your income for Medicare levy surcharge (MLS) purposes doesn't include any assessable First Home Super Saver (FHSS) released amount for the income year under the FHSS scheme. Refer to our website for more information.

 

You can make the following existing types of contributions towards the FHSS scheme:

  • voluntary concessional contributions – including salary sacrifice amounts or contributions for which a tax deduction has been claimed, these are usually taxed at 15% in your fund
  • voluntary non-concessional contributions that you have made – these are made after tax or if a tax deduction has not been claimed.

 

For more information about how you can save in super for your first home using the FHSS scheme, have a look at our website.

 

Voluntary concessional contributions are also known as reportable super contributions. Your income for MLS purposes includes these contributions. Voluntary non-concessional contributions aren't part of your income for MLS purposes.

 

If the sale of employee share scheme (ESS) shares results in a capital gain, the net capital gain forms part of your taxable income. Your income for MLS purposes includes your taxable income.

 

For more information about ESS and capital gains tax, check out our website.

 

Hope this helps.

 

Thanks, Chris

Newbie

Replies 3

Hi Chris,

 

Thanks heaps for the reply!

It was really helpful!

Just last thing I want to ask, I did some research about the incentive of refinancing my home loan which the property is my main residance. My conclusion is it does not form part of my assessable income.

Are you able to advise whether I am correct?

 

Kind Regards,

Lily

ATO Community Support

Replies 2

Hi @amiya1672,

 

That's right, the incentive payment doesn't need to be reported on your income tax return as it relates to a borrowing rather than an investment. As the payment relates to the loan rather than the property there are no capital gains effects either. You don't need to reduce the CGT cost base of the property by this amount.

 

Thanks for posting and let us know if you have any further questions,

JasonT

Newbie

Replies 1

Hi Jason,

 

Thanks heaps for getting back to me!

The info is really helpful Smiley Happy

Just one last question, for the WFH deduction of $0.80/hour, do we claim from start of day to work finished for the day including lunch break?

 

Kind Regards,

Lily

Community Moderator

Replies 0

Hi @amiya1672 

 

You would claim for the time that you are working, not when you have your brearks.