I found this to be a very informative video. I did however want to flag a potential issue for people that my husband and I have come across with the scheme. If your employer pays your super quarterly, you will either need to stop salary sacrificing at the end of March or get them to process your last quarter in June before the end of the FY otherwise it will get attributed to the wrong financial year. My husband and I have essentially lost $11,000 (locked up until we retire) as we couldn't pull it out via this scheme as the last quarter was processed in July and both our super company and the ATO won't recognise that it was attributed to last financial year! I'd highly recommend you speak with an accountant (if you are planning to salary sacrifice & do personal contributions over multiple years) so you don't get stung like we did.
Whats the First Home Buyer Super Saver scheme like? Can you use your super? Find out all the details www.huntergalloway.com.au/first-home-super-saver-scheme/
Thanks Jenna you're too kind! If there is anything you think we missed or questions you have let us know and we'll cover it on a future video. Cheers, Jayden.
That's a great question, the first home super saver scheme only allows you to access voluntary super payments on top of the mandatory employer contributions. I don't believe you'd be able to use your KiwiSaver for a home deposit. Please check out: www.huntergalloway.com.au/first-home-super-saver-scheme/
Don't forget you pay tax on withdrawal as well, which is calculated as your marginal tax rate + medicare levy - 30. So if you are earning above $120,000, in addition to 15% you've already paid (superannuation tax) you will pay 37% + 2% - 30 = 9% extra. So 24% altogether on your contribution. Still better than 37% you'd have paid otherwise, but don't overestimate your ROI. :)
Great informative video. If it takes say 2 years to save up to the maximum 30k but you aren't quite ready to buy a house and want to wait another year for extra savings. Is there a certain amount of time before that money is to be used before it gets absorbed into your super account to not be touched until retirement?
Hey mate, thanks for posting this. The only part that confuses me on the ATO website is that it says you can only take out a maximum of 85% of what you save through salary sacrifice. Is that because of the 15% tax or is the tax then deducted from the maximum you can take out? See the copy and paste from their website below. "You can withdraw, taking into account the yearly and total limits: 100% of your non-concessional (after-tax) amounts 85% of concessional (pre-tax) amounts." Also, does it matter if I take longer than 3 years to save up the $30k I want to withdraw? Thanks so much for this video!!!
A little help here please, if you don't mind. "you can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions." The whole purpose of FHSS is tax reduction (i.e. 15% < marginal tax rate) for faster deposit savings (please correct me if I'm wrong). Does this mean that concessional contributions via salary sacrifice is more recommended than non-concessional contributions as the after tax is not subject to tax? "recontribute the assessable FHSS amount (less tax withheld) into your super fund ..." Why do we have to recontribute to the FHSS amount (i.e. continue to add more money to super) when the amount has already been released, which means that we're not eligible for the FHSS anymore? "If you don't notify us or you choose to keep the FHSS money, ..." Does this mean that if the FHSS money is used for different purpose (i.e. not for house deposit), then it will be taxed at 20%? If so how does the ATO know to tax it further? Would the salary sacrifice automatically stop when the FHSS amount is withdrawn? If not, then do we need to go through any application process so no more sacrifice is made after the first house is bought?
Yeah so once your savings have been released, you have up to 12 months (or other period allowed) from the date you requested the release of FHSS amounts to sign a contract to purchase or construct a home. If you do not sign a contract to purchase or construct a home within 12 months from the date you requested a release you can get an extension and do a few more things - more info www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/
Yeah it applies to any additional contributions made on top of the minimum super payments contributed by your employer. If you have made additional payments get a determination from ATO to find out how much you can withdraw - www.huntergalloway.com.au/first-home-super-saver-scheme/
Hi Henry, does accessing your FHSSS become an issue if you're already salary sacrificing? If you've put in additional payments on top of your minimum then no, it wont be an issue and you'll be able to access. All the best :)
Yeah if you have already put the money in your savings it wont work with FHSSS as it needs to come from your pay first. Check out www.huntergalloway.com.au/first-home-super-saver-scheme/ for more info
Hi Kirk, Yes, sound like you would be :) More details below from the ATO Website; www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/ Eligible contributions You can make the following existing types of contributions towards the FHSS scheme: 1. 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 2. voluntary non-concessional contributions that you have made - these are made after tax or if a tax deduction has not been claimed.
Mortgage Broker Brisbane - Hunter Galloway I was already putting an extra 5.5% into my super via salary sacrifice the last 6 months, so guess I was unknowingly doing it haha. Might be a good idea to wait for the market to go up again and then max out this years with 15k. When I do the last remaining 15k, when I pull those funds out, am I paying 15% tax on that 30k then?.
![The Millionaire Advice For First Home Buyers [8 mistakes to avoid]](http://i.ytimg.com/vi/kMEYjROH44Q/mqdefault.jpg)
![The Millionaire Advice For First Home Buyers [8 mistakes to avoid]](/img/tr.png)
Join FB Group (Free Access) 👉 facebook.com/groups/209395390748110/
I found this to be a very informative video. I did however want to flag a potential issue for people that my husband and I have come across with the scheme. If your employer pays your super quarterly, you will either need to stop salary sacrificing at the end of March or get them to process your last quarter in June before the end of the FY otherwise it will get attributed to the wrong financial year. My husband and I have essentially lost $11,000 (locked up until we retire) as we couldn't pull it out via this scheme as the last quarter was processed in July and both our super company and the ATO won't recognise that it was attributed to last financial year! I'd highly recommend you speak with an accountant (if you are planning to salary sacrifice & do personal contributions over multiple years) so you don't get stung like we did.
Thanks for sharing Cian and appreciate it!
For free home buying resources, calculators and downloads check out the First Home Buyers Hub www.huntergalloway.com.au/hub
Whats the First Home Buyer Super Saver scheme like? Can you use your super? Find out all the details www.huntergalloway.com.au/first-home-super-saver-scheme/
Currently binge watching your videos. Love your content!
Thanks Jenna you're too kind! If there is anything you think we missed or questions you have let us know and we'll cover it on a future video. Cheers, Jayden.
Hi
I would like to ask if we could use the KiwiSaver for our first home that we transferred in Australia Super? Thanks!
That's a great question, the first home super saver scheme only allows you to access voluntary super payments on top of the mandatory employer contributions. I don't believe you'd be able to use your KiwiSaver for a home deposit. Please check out: www.huntergalloway.com.au/first-home-super-saver-scheme/
Don't forget you pay tax on withdrawal as well, which is calculated as your marginal tax rate + medicare levy - 30. So if you are earning above $120,000, in addition to 15% you've already paid (superannuation tax) you will pay 37% + 2% - 30 = 9% extra. So 24% altogether on your contribution. Still better than 37% you'd have paid otherwise, but don't overestimate your ROI. :)
Great feedback and appreciate the workings!
Any scheme that common man benefits will have a catch. I wouldn't lockup my savings in super to save 4.5k in 3 years
How do you calculate the best amount you should you salary sacrifice?
Give this calculator a crack www.amp.com.au/calculators/sal_sac_calculator/salary_sacrifice.htm#Top0
Great informative video.
If it takes say 2 years to save up to the maximum 30k but you aren't quite ready to buy a house and want to wait another year for extra savings. Is there a certain amount of time before that money is to be used before it gets absorbed into your super account to not be touched until retirement?
Thanks for watching Lachie!
Hey mate, thanks for posting this.
The only part that confuses me on the ATO website is that it says you can only take out a maximum of 85% of what you save through salary sacrifice.
Is that because of the 15% tax or is the tax then deducted from the maximum you can take out? See the copy and paste from their website below.
"You can withdraw, taking into account the yearly and total limits:
100% of your non-concessional (after-tax) amounts
85% of concessional (pre-tax) amounts."
Also, does it matter if I take longer than 3 years to save up the $30k I want to withdraw?
Thanks so much for this video!!!
That's correct, the 15% is already taken out of the contribution through tax. No, it doesn't matter if it takes longer than 3 years.
Thanks for watching Owais, and appreciate the reply Anne
A little help here please, if you don't mind.
"you can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions."
The whole purpose of FHSS is tax reduction (i.e. 15% < marginal tax rate) for faster deposit savings (please correct me if I'm wrong). Does this mean that concessional contributions via salary sacrifice is more recommended than non-concessional contributions as the after tax is not subject to tax?
"recontribute the assessable FHSS amount (less tax withheld) into your super fund ..."
Why do we have to recontribute to the FHSS amount (i.e. continue to add more money to super) when the amount has already been released, which means that we're not eligible for the FHSS anymore?
"If you don't notify us or you choose to keep the FHSS money, ..."
Does this mean that if the FHSS money is used for different purpose (i.e. not for house deposit), then it will be taxed at 20%? If so how does the ATO know to tax it further?
Would the salary sacrifice automatically stop when the FHSS amount is withdrawn? If not, then do we need to go through any application process so no more sacrifice is made after the first house is bought?
Hey Chau, sorry it's taken a little while to get back to you. If you still need assistance, please hit us up www.huntergalloway.com.au/contact/
If you re-contribute can you then access the scheme again in the future for a first home?
Yeah so once your savings have been released, you have up to 12 months (or other period allowed) from the date you requested the release of FHSS amounts to sign a contract to purchase or construct a home.
If you do not sign a contract to purchase or construct a home within 12 months from the date you requested a release you can get an extension and do a few more things - more info www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/
You can only have one release.
You can contribute as many times as you times just need to stay with in the contrition limit for each year and over all years.
Does that only apply to employee contributed super? I didn't make much self contribution
Yeah it applies to any additional contributions made on top of the minimum super payments contributed by your employer. If you have made additional payments get a determination from ATO to find out how much you can withdraw - www.huntergalloway.com.au/first-home-super-saver-scheme/
@@MortgageBrokerAustralia Thanks a lot
Does this become an issue if I already salary sacrifice?
Hi Henry, does accessing your FHSSS become an issue if you're already salary sacrificing? If you've put in additional payments on top of your minimum then no, it wont be an issue and you'll be able to access. All the best :)
Hi there, thanks for the video, how does it actually work if you put money in from your savings( already taxed)? Can I claim paid tax back?
Yeah if you have already put the money in your savings it wont work with FHSSS as it needs to come from your pay first. Check out www.huntergalloway.com.au/first-home-super-saver-scheme/ for more info
Hi! Just a quick question. I already have salary sacrifice which approx. $600/fortnight. Am I still eligible to apply for FHSSS? THANKS!
Hi Kirk,
Yes, sound like you would be :)
More details below from the ATO Website;
www.ato.gov.au/individuals/super/withdrawing-and-using-your-super/first-home-super-saver-scheme/
Eligible contributions
You can make the following existing types of contributions towards the FHSS scheme:
1. 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
2. voluntary non-concessional contributions that you have made - these are made after tax or if a tax deduction has not been claimed.
Hmmm how have I never heard about this. Thanks for the info
Haha glad to have helped Donavan! Its pretty neat get on it!
Mortgage Broker Brisbane - Hunter Galloway I was already putting an extra 5.5% into my super via salary sacrifice the last 6 months, so guess I was unknowingly doing it haha. Might be a good idea to wait for the market to go up again and then max out this years with 15k. When I do the last remaining 15k, when I pull those funds out, am I paying 15% tax on that 30k then?.
background music too loud
Thanks for the feedback Fabs
Huh? you said - She salary sacs $10k per year, for 3 years, and ends up with $25k?
Thanks for the feedback Monica!
Can't focus on what you are saying because you are too cute :P
Thanks 😅