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Re: Releasing FHSS and deductions

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I have put in $28,000 non-concessional voluntary payments (after tax / from salary) over three years and would like to request a release. I have claimed the deductions / will be claiming this year as a tax deduction on my personal tax. 

 

When going through the release process, what do I write in the deductions section? $28,000? 

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Devotee Registered Tax Practitioner

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I have put in $28,000 non-concessional voluntary payments (after tax / from salary) over three years and would like to request a release.  I have claimed the deductions / will be claiming this year as a tax deduction on my personal tax. 

 

When going through the release process, what do I write in the deductions section? $28,000? 

 

From ATO:

The FHSS maximum release amount is the sum of your eligible contributions, taking into account the yearly and total limits, and associated earnings. This amount includes:

  • 100% of eligible non-concessional contributions
  • 85% of eligible concessional contributions
  • associated earnings calculated on these contributions using a deemed rate of return – this is based on the 90-day Bank Bill rate plus three percentage points (shortfall interest charge rate).

The FHSS maximum release amount takes into account the $15,000 limit from any one year and $30,000 total limit to the total contributions across all years when calculating the eligible contributions, before adding the associated earnings.

 

https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/First-Home-Super-Saver-Sch...

 

Best to ask your fund what your FHSS amount is.

 

 

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ATO Certified Response

Devotee Registered Tax Practitioner

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I have put in $28,000 non-concessional voluntary payments (after tax / from salary) over three years and would like to request a release.  I have claimed the deductions / will be claiming this year as a tax deduction on my personal tax. 

 

When going through the release process, what do I write in the deductions section? $28,000? 

 

From ATO:

The FHSS maximum release amount is the sum of your eligible contributions, taking into account the yearly and total limits, and associated earnings. This amount includes:

  • 100% of eligible non-concessional contributions
  • 85% of eligible concessional contributions
  • associated earnings calculated on these contributions using a deemed rate of return – this is based on the 90-day Bank Bill rate plus three percentage points (shortfall interest charge rate).

The FHSS maximum release amount takes into account the $15,000 limit from any one year and $30,000 total limit to the total contributions across all years when calculating the eligible contributions, before adding the associated earnings.

 

https://www.ato.gov.au/Individuals/Super/Withdrawing-and-using-your-super/First-Home-Super-Saver-Sch...

 

Best to ask your fund what your FHSS amount is.

 

 

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I know I can request the full $28,000. I don’t understand what the deduction question means?

Is it asking what $ amount I claimed the payments on my personal tax? Or? If it is, do I write in the full amount of the $28,000?
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ATO Certified Response

Community Support

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Hi @jesswa

 

Thanks for your question.

 

When you are ready to withdraw your voluntary super contributions under the FHSS scheme, you will need to submit a FHSS determination request followed by a FHSS release request.

 

For more information about the FHSS scheme and applying to release your savings, have a look at our website.

 

When you complete the FHSS determination request, you will be asked to detail every voluntary contribution you made by providing the date, voluntary contribution type (personal after-tax or salary sacrifice) and amount. If you made 15 contributions over the three years, you will need to detail 15 separate contributions.

 

You will then be asked to provide a total deduction amount for each applicable financial year. These can be deductions that you have already claimed or intend to claim.

 

Assuming that you have claimed or will be claiming deductions for all three financial years, you will need to provide three separate deduction amounts. You will be asked to provide the financial year and the total amount for each financial year.

 

If you complete the FHSS determination request online, the system is designed to ensure that you don't enter a deduction amount that is more than the total of the contributions for the applicable financial year.

 

Based on the information that you provide, we will then work out the following amounts:

  • Concessional contributions
  • Non-concessional contributions
  • Total associated earnings
  • Estimated maximum withholding tax, and
  • Maximum release amount

 

Hope this helps.

 

Thanks,

 

ChrisR

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Newbie

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thanks for that info. I went ahead and requested the release. 

It will only return $26,640.00 back to me. Do you know why is it not the full $30,000? 

 

Thanks again

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Community Support

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Hi @jesswa

 

Thanks for your reply.

 

Based on the information from your previous posts, it isn't surprising that the FHSS maximum release amount is less than $30,000. This is because the amount includes:

  • 100% of eligible non-concessional contributions
  • 85% of eligible concessional contributions
  • associated earnings calculated on these contributions

 

Assuming that your total personal voluntary contributions were $30,000 and your total tax deductions were $28,000, the outcome of your FHSS determination request might have looked something like this:

  • Concessional contributions: $23,800 (85% of $28,000)
  • Non-concessional contributions: $2,000 (personal voluntary contributions not claimed as a deduction)
  • Total associated earnings: $840
  • Maximum release amount: $26,640

 

Hope this helps.

 

Thanks,

 

ChrisR