Announcements
Are you a tax professional needing a bit more time to lodge? Check out how to apply online for a deferral, or ask the Community!

ATO Community

Re: FHSS

Newbie

Views 1159

Replies 6

Apologies if this has been answered previously. Once FHSS is claimed what happens on your tax return?
Specifically about adding it into your tax return as assessable income and the tax implications/obligations as some tax has already been paid on release. I’m in the 32.5% bracket
1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 5

Hi @CLH1,

 

Not a worry at all, happy to answer Smiley Happy

 

The amount of your FHSS released amount should pre-fill into your tax return. However it's best to have your payment summary that shows the assessable FHS amount at hand when completing the return just in case that information hasn't loaded by the time you lodge.

 

The payment summary will be sent after you've received all of the approved FHSS amount, and you can expect to receive it a few weeks after the end of financial year.

 

Here is a direct link to the instructions for entering FHSS details in MyTax.

 

The tax that's already been withheld on this payment is taken into account when you lodge your return, along with your marginal tax rate for the year you requested the release. So this will all be calculated specific to your circumstances around the FHSS. Here's some more FHSS information to expand on this.

Hope this has helped!

 

RachATO

6 REPLIES 6

Most helpful response

ATO Community Support

Replies 5

Hi @CLH1,

 

Not a worry at all, happy to answer Smiley Happy

 

The amount of your FHSS released amount should pre-fill into your tax return. However it's best to have your payment summary that shows the assessable FHS amount at hand when completing the return just in case that information hasn't loaded by the time you lodge.

 

The payment summary will be sent after you've received all of the approved FHSS amount, and you can expect to receive it a few weeks after the end of financial year.

 

Here is a direct link to the instructions for entering FHSS details in MyTax.

 

The tax that's already been withheld on this payment is taken into account when you lodge your return, along with your marginal tax rate for the year you requested the release. So this will all be calculated specific to your circumstances around the FHSS. Here's some more FHSS information to expand on this.

Hope this has helped!

 

RachATO

Newbie

Replies 2

Thank you @RachATO
So the FHSS amount is still liable for more tax on my tax return? Minus the tax amount already paid, is that correct?

Community Moderator

Replies 1

Hi @CLH1

 

Thanks for getting back to us.

 

As your assessable FHSS released amount needs to be included in your tax return, it will form part of your taxable income. As you are in the 32.5% marginal tax bracket, it will be taxed at 4.5% due to the 30% offset that we will apply to the amount (32.5% plus Medicare levy minus 30%).

 

The tax that we withheld from the amount will be a credit on your income tax assessment. Depending on the outcome of your assessment and how much you asked us to withhold in your FHSS release request, you may get some or all of it back as a refund.

 

All the best.

Newbie

Replies 0

Thank you @ChrisATO you made that very clear for me, that’s great

Newbie

Replies 1

I do not understand FHSS at all; and am pretty sad about the outcome I seem to have. 

 

I have voluntarily contributed a direct debit $12,000 into my Super this financial year. 

 

It has autopopulated in the FHSS part of MyGov's ATO Site.

 

I applied for a determination and applied for $12,000 deduction on the 12,000 I have voluntarily contributed. 

 

I am in the 37c tax bracket based on my earnings.

 

The maximum release amount I have been given is: $10,228.00

 

So, looks like i'm approx. 1,800 worse off by using FHSS... 

 

My accountant said that I might have to wait to tax time to relise the benefit. But, will be 1,800 worse off for my house deposit. 

 

Seems and feels like a rip off. 

Initiate

Replies 0

 
    

 

I am not a ATO accountant or accountant but am a financial tax adviser (cannot provide specific tax advise, please confirm with accountant)

 

but you put 12k after tax or before?

 

because you said 37% tax on 12k = $7,560.00 (not considering Medicare levy)

 

Compared to over 10k.

 

How is this worse off sorry?