✨Check out this video to effectively use this scheme🏡 - 5 Mistakes That Makes First Home Super Saver Scheme (FHSSS) Useless in 2024 ua-cam.com/video/z2bMWA91wwk/v-deo.html&ab_channel=RuiShi
Your content is so helpful 😊thank you!! I find this scheme quite confusing. My main question is if you save $50k and can only withdraw 15k plus some interest and at a lower tax rate, what happens to the rest of what you saved in your super ($35k) ?
Thank you! 😊 I’m glad you find the content helpful. It’s understandable why the FHSSS can be confusing. The $15k limit actually refers to the maximum contribution per financial year that can count toward the scheme, not the total withdrawal amount. You can withdraw up to $50k of eligible contributions (plus earnings) in one go. Hope that clears it up!
Hi Rui, thank you for the video. I did not know that when withdrawing, it included the money that the contributions made during the time it was in the super, that is correct yes? One question I have always wondered was say for the 1st year I did not contributed the max, (15k), is there a way to make up for that year by contributing more in the 2nd year, or would that not be allowed due to the 15k per year rule. Thanks so much your video was very insightful.
Hi, and thank you for watching! 😊 Yes, you’re correct-the amount you can withdraw under the FHSSS includes both your eligible contributions and the associated earnings while they were in super. Just to clarify, associated earnings are a notional amount of earnings calculated at the shortfall interest charge rate, not the actual earnings. If you did not contribute the maximum $15k in the first year, it doesn't mean you can contribute more than $15k in the second year and get it out under the FHSSS. You need to stay within the $15k per year limit, but you can still maximize future contributions to make the most of the $50k total cap. Hope this helps clarify things!
Wow. Almost screwed myself over - that'll teach me to read the rules. I did a determination, but its been 20 days since I signed the contract and havent released the funds yet! But the land titles in October, so I'll request them in September instead 😅
It's great that you caught that in time! Reading the rules carefully can definitely save you from potential issues. Requesting the funds after the September change sounds like a good plan. Based on the current rule, you'll be subject to FHSS tax if the release is after 14 days of signing the contract. Good luck with your land purchase!
@@OZRuiShi Almost cost myself two years of max contributions :( What is the FHSS tax? Marginal tax rate -30%? Wouldn't this have been the case to begin with? So based on the new rules in September, am I allowed to make a new determination on the 15th of September for the scheme or am I stuck with the one I made in this year July?
@@SnowofLight Thanks for your comment! Based on the rules before 15th of September 2024, FHSS tax is a penalty tax (20%) if the scheme is not used according to the rule. I can't give a specific answer to your situation, so it's best to consult your accountant or ask the ATO for clarification. Hope this helps!
Hi Rui, thank you for the video. Could you please also explain if I can withdraw only what I contributed in the previous financial year? My understanding is that if I contribute $15,000 in this financial year, and the money has already landed in my super account, the ATO would not include any salary sacrifice from the current financial year. Please correct me if I am wrong.
Thanks for your comment! Just to clarify, contributions from the current financial year can be withdrawn under the FHSS scheme. In your example, since you’ve already contributed $15,000 as a personal contribution this financial year, you’ve reached the annual limit, meaning any additional salary sacrifice contributions won’t be eligible for withdrawal. It’s always a good idea to double-check with the ATO or a financial adviser for more details! 😊
Hi, Does the new rule apply to contracts signed before the 15th of September as well? For instance I signed a contract at the end of June but haven't reached settlement. Can I still withdraw under the FHSS?
Thanks for your question! I can’t comment on your specific situation, but generally, the new rule applies after the 15th of September. However, it could provide opportunities for those who used it earlier to correct errors. It’s always best to check with a financial adviser to be sure!
Thanks for your question! You can only request a release under the FHSS scheme once in your lifetime. However, within that one request, you can include contributions from multiple financial years, as long as they fit within the scheme's limits.
✨Check out this video to effectively use this scheme🏡 - 5 Mistakes That Makes First Home Super Saver Scheme (FHSSS) Useless in 2024
ua-cam.com/video/z2bMWA91wwk/v-deo.html&ab_channel=RuiShi
Your content is so helpful 😊thank you!! I find this scheme quite confusing. My main question is if you save $50k and can only withdraw 15k plus some interest and at a lower tax rate, what happens to the rest of what you saved in your super ($35k) ?
Thank you! 😊 I’m glad you find the content helpful. It’s understandable why the FHSSS can be confusing. The $15k limit actually refers to the maximum contribution per financial year that can count toward the scheme, not the total withdrawal amount. You can withdraw up to $50k of eligible contributions (plus earnings) in one go. Hope that clears it up!
@OZRuiShi thanks that definitely clarifies the issue. It just wasn't worded properly I thought.
Hi Rui, thank you for the video.
I did not know that when withdrawing, it included the money that the contributions made during the time it was in the super, that is correct yes?
One question I have always wondered was say for the 1st year I did not contributed the max, (15k), is there a way to make up for that year by contributing more in the 2nd year, or would that not be allowed due to the 15k per year rule.
Thanks so much your video was very insightful.
Hi, and thank you for watching! 😊 Yes, you’re correct-the amount you can withdraw under the FHSSS includes both your eligible contributions and the associated earnings while they were in super. Just to clarify, associated earnings are a notional amount of earnings calculated at the shortfall interest charge rate, not the actual earnings.
If you did not contribute the maximum $15k in the first year, it doesn't mean you can contribute more than $15k in the second year and get it out under the FHSSS. You need to stay within the $15k per year limit, but you can still maximize future contributions to make the most of the $50k total cap. Hope this helps clarify things!
Wow. Almost screwed myself over - that'll teach me to read the rules.
I did a determination, but its been 20 days since I signed the contract and havent released the funds yet!
But the land titles in October, so I'll request them in September instead 😅
It's great that you caught that in time! Reading the rules carefully can definitely save you from potential issues. Requesting the funds after the September change sounds like a good plan. Based on the current rule, you'll be subject to FHSS tax if the release is after 14 days of signing the contract. Good luck with your land purchase!
@@OZRuiShi
Almost cost myself two years of max contributions :(
What is the FHSS tax? Marginal tax rate -30%? Wouldn't this have been the case to begin with?
So based on the new rules in September, am I allowed to make a new determination on the 15th of September for the scheme or am I stuck with the one I made in this year July?
@@SnowofLight Thanks for your comment! Based on the rules before 15th of September 2024, FHSS tax is a penalty tax (20%) if the scheme is not used according to the rule. I can't give a specific answer to your situation, so it's best to consult your accountant or ask the ATO for clarification.
Hope this helps!
Hi Rui, thank you for the video.
Could you please also explain if I can withdraw only what I contributed in the previous financial year? My understanding is that if I contribute $15,000 in this financial year, and the money has already landed in my super account, the ATO would not include any salary sacrifice from the current financial year. Please correct me if I am wrong.
Thanks for your comment! Just to clarify, contributions from the current financial year can be withdrawn under the FHSS scheme. In your example, since you’ve already contributed $15,000 as a personal contribution this financial year, you’ve reached the annual limit, meaning any additional salary sacrifice contributions won’t be eligible for withdrawal. It’s always a good idea to double-check with the ATO or a financial adviser for more details! 😊
Hi,
Does the new rule apply to contracts signed before the 15th of September as well? For instance I signed a contract at the end of June but haven't reached settlement. Can I still withdraw under the FHSS?
Thanks for your question! I can’t comment on your specific situation, but generally, the new rule applies after the 15th of September. However, it could provide opportunities for those who used it earlier to correct errors. It’s always best to check with a financial adviser to be sure!
Do i need to tell ATO that im going to contribute Salary Sacrifice before i start ?
No, you don't need to inform the ATO before you start making salary sacrifice contributions. You simply need to arrange it with your employer. 😊
@@OZRuiShi thank you !
@@OZRuiShiHi Rui, What about personal deductible super contribute? Same rule? 🧐
FHSS mean only can request Release once per year or just once??
Thanks for your question! You can only request a release under the FHSS scheme once in your lifetime. However, within that one request, you can include contributions from multiple financial years, as long as they fit within the scheme's limits.
So good
Thank you! I'm glad you enjoyed it! 😊