First Home Buyer Saver Scheme FHSS Explained | Increase your home deposit! Superannuation Australia
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- Опубликовано: 7 сен 2020
- In this video I’m explaining the FIRST HOME SAVER SCHEME (FHSS) which is a government initiative to help you save for your first home using the Superannuation system.
This first home buyer tip is a must know!
The First home deposit scheme doesn’t let you use your current super as a deposit - it allows you to contribute extra money to super and use the low tax zone of superannuation to boost your property deposit savings!
For more information:
Our website: www.whatifadvice.com.au - you can book a meeting with me here.
Our email: info@whatifadvice.com.au
ATO Page - www.ato.gov.au/individuals/su...
ATO Community Page - community.ato.gov.au/t5/forum...
SIC Rates - www.ato.gov.au/Rates/Shortfal...
This video is part of our Superannuation series; our other super videos include:
Superannuation Explained: • Superannuation Explain...
How to read your super statement: • How to read & review y...
How to find your lost super: • LOST SUPER... How to f...
Choosing your super investment: COMING SOON
Buying property with Super - Self managed super funds explained: COMING SOON
Salary Sacrificing to Super Explained: COMING SOON
General Advice & Accuracy warning: The material shown in this presentation is for general information purposes only. It is not intended to be, nor should it be read as specific personal investment or risk advice. Whilst all care is taken in the preparation of this material no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by What If Advice Pty Ltd, or any member or employee of What If Advice Pty Ltd. Before acting on any of the information contained in this presentation you should obtain special advice from a specialist investment or risk professional, which is appropriate to your specific investment or risk needs, objectives and financial situation. 
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This is what I have been looking for!! It has been so confusing but you’ve made it so much clearer. Earned yourself a subscriber !
I'm lucky to find your channel through this video. Thank u for the detailed explanation.
This is an awesome video. Super clear & easy to follow. Thanks :)
very interesting advice and good to have someone break it down and explain. Thanks
Thanks Frontline Locksmiths - glad you liked it!
Thanks for making this! Really useful and well explained :)
Awesome advice Conaill, keep up the good work with the videos.
Thanks Thierry!
Fantastic video, after doing a crappy job of explaining the concept to my partner I decided to just show her your video instead. Answers every question in a very digestible and accessible way - thanks mate!
This was so comprehensive, thank you
This is very educational. And has put some things in perspective . Thank you
Thanks Chanel
You're legend! Thanks for posting this.
Really looking forward to Salary Sacrificing to Super Explained!
Awesome work (Y) Can you do a video on SMSF for beginners, what to look for, where to begin?
Thanks for the video. It was very helpful
Fantastic video and great content! Any plans on making new videos?
Very helpful breakdown! Now just need to weigh it up for my personal situation 👍🏼 It would be great to discuss this with someone of your experience ✌🏼
Thank you for the comment. After much searching we have partnered with our first ever CPA Accountant. I highly recommend emailing him as he can help apply this and many of our other teachings to personal situations zdenman@whatifadvice.com.au
Great video.
I liked it🙂
But up to my understanding government is changing 15+4.5%tax all together till you get your money in hand
thanks for this video mate
Amazing advice as always Conaill! I will share to all my budding First Home Buyers now that the market is shifting in their favour
Thanks mate, hope you're well in Lockdown Land! Looking forward to when I can come visit you!!
If you have a corporate super account (employer sponsored super), any insurance or admin fees paid by your employer also counts towards the $25k cap.
I cant find you on audea. can you post audio versions of your videos there? Would love to listen to them! thanks again for the great content.
Super helpful video. Really cleared out things for me, but also made me not wanna do it anymore 🤣
Why the Gov has to make this super complicated 😂
Great video! Just wondering if i can use the fhsss in combination with the first home buyer scheme. So withdrawing the money through fhsss and paying off the 5% deposit
Thank you mate, I've one question though. Is employer additional contribution(excluding the 9.5%), constitute part of FHSS. I am referring to employer matching employee's additional contributions towards super.
Hey mate awesome vid, just wondering how would ATO be aware that you’ve spent the money on a property and not something else entirely ?
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.
Super helpful!! thank you!
Hi Cian, this is an excellent point and something we do highlight with our clients! However, for the purposes of this video we just wanted to cover specific basics.
For your reference we now have our first highly qualified in-house accountant. I highly recommend emailing at zdenman@whatifadvice.com.au should you need assistance.
@@WhatIfAdvice I’m so confused why you wouldn’t specify this in the video? Many young people wouldn’t be able to afford an accountant and hence why they come to RUclips to seek a thorough explanation.
Hey mate very helpful video but is there somewhere in the salary sacrifice you need to put it like when you salary sacrifice do you need to specifically say it’s for the supersavers scheme somewhere or you can pull out any salary sacrifice for the house
I appreciate this video as it inspired me to start contributing to my Superannuation fund two years ago. In the financial year 2021-22, I contributed $5.5K and already claimed the associated tax deduction. In the current financial year, 2022-2023, I contributed $8K.
Now, as I am planning to buy a house, when I am trying to withdraw this money, in the declaration section, I am seeing 'I will not claim tax deductions in respect of the contributions that are included in my FHSS determination.' So, does it mean I can't claim a tax deduction for the $8K that I contributed this year during the income tax filing?
Great summary, but wish you had included HECS repayment implications when salary sacrificing. I.e. you might end up with a tax bill as your employer is withholding your compulsory repayment based on the taxable income after salary sacrificing. But the gov calculates your repayment on your full taxable income before the salary sacrificing. I may be wrong but that’s how I understand it!
So is this true??
Hey mate,
Thanks for the comprehensive video.
Am I eligible for FHSS scheme if I have signed a contract for my first home that is being built but settlement has not yet occurred or is supposed to occur in 4/5 months time? eg. off the plan contract.
Thank you
Thanks for the big brain info, I called up Aus Super and they said that they would keep track of the amount that I have contributed through salary sacrifice, is that enough for the ATO? Can I trust them?
Informative video…
My Situation…,
I have transferred my NZ super fund( Kiwi saver) to my Australian Super fund. I could withdraw this money under FHSS scheme as per the information from govt websites.
I am buying a land to build my first home. Found the land and waiting for settlement; but I have already signed the building contract.
My question is… Am I eligible to apply for determination as I haven’t signed my land Contract yet? Would I able to use the money to buy the land? Would ATO Check the date in building contract ??
Really appreciated your time to explain it to us..
Thanks in Advance
Jils Paul.
Any chance you could clarify whether it's better, the same or worse to pay out HECS debt before withdrawing FHSS as the FHSS will deduct any outstanding debts before paying you, sorry my math is really bad around these things haha!
If you have a variable income, what marginal tax rate does the ATO use for the withdrawl tax? The rate from the previous financial year, or....?
I know this is an old video, but I have a question. How does it work with withdrawal if that would be split across 2 tax brackets? Is it the same as normal e.g. each portion at the respective marginal rate less 30% offset? Or is it all at the higher marginal less 30%?
If you make voluntary contributions post-tax (i.e. the money you receive in your bank acct from your employer), can you then claim a tax deduction on that contribution?
Given this FY is nearly done, I wont make it to $15k this FY, so was wondering if i can make post-tax voluntary contributions in addition to the salary sacrificed voluntary contribution to bring my total contribution for this FY to $15k. Though that only makes fiscal sense if im able to claim a tax deduction on that post-tax contribution
Caps have changed to $27500.00 from 30 July 2021. Also non-concessional has changed to $110k
Hi @Crystal thank you for the comment and you are very much correct. We will be updating our videos for the new rates soon.
How long does it take to receive the determination after requesting?
here is a pre EOFY question for you... Can I make a spousal contribution to my wifes super - that can then be used by both of us as a FHSS ?
Can you use this scheme in combination with the first home guarantee?
Great video full of information. Thanks :) I have a question.
You said the scheme requires the person to live in the property for 6months within 12 months of purchasing the property. Does that mean you can move out after fulfilling this requirement?
yes, 6 months then you can sell or rent it.
thats just first home buyers rule.
For a low income, would this be better than just saving money in a high interest savings account?
hi, what will happen if ATO determination says, for example 13k and my super has 12500 in super balance, after tac deduction, and stock marcket decline, can i still withdraw 13 k as per the ATO determination?
I know this video is a bit old now. But how does this compare to simply putting said money into a banking savings account instead of this super saver?
Just curious. If I keep the money, and am taxed the 20% will I be able to get any of that back in a tax return assuming I am under the threshold for that financial year? Or do they keep it regardless?
hey there, is this video still up to date?
if i take out 30k for fhss, is it just the voluntary contributions or it includes super guarantee in my superannuation?
Thanks, this is really helpful- can you make a contribution of $X and withdraw straight away to apply for a home to save on tax?
Yes, main thing to consider is - it would be in 'only 1 financial year' , and it will take a few weeks to get in and out.
Thanks for the video Conaill, very interesting information. Can I ask if add taxed money to your contributions is it worth in relation of how much you can claim back? Thanks
Hi Andres, Can you please clarify what you mean by "Claim back"? Are you referring to the tax-deductible super contributions?
At 7:40 you subtract 30% from your marginal tax rate however mine is below 30%. Got any info on this?
Question 1 - There is a $15,000 per year withdrawal limit as well. Is this $15,000 limit post tax limit (saying it's ok to deposit 17,647 per year or less from avoiding your excess contribution to be stuck in your super)
Question 2 - Also, is $50k limit available to each individual in a couple for withdrawal for same house or if both can withdraw this amount, you basically get to withdraw $100k for deposit of new home?
Question 3 - this scheme is for ANY first house you buy - no property limit on the first house you buy say it has to be less than $500k or $700 etc - you just have to be 18 plus with zero properties?
So new marginal rates next financial year means you won't get taxed on withdrawal with the 30% offset....wonder if they're changing that.
Thank you for this video! Could you invest your money in a separate superfund or a different growth category in a means to track your contributions this way? and is the max we can withdraw for the scheme 30k?
Is now $50k!
Hi Conaill, my son who is 24 was paid out after leaving the army a lump sum of $50 000. i was talking to him about the FHSS and currently as i read it has gone up to a max of $50000 you can withdraw if you have contributed over 2 financial yrs to purchase a home. he is currently studying living at home and has other savings and partime wages (not too much). he has a 3-4 yr plan so i was thinking as it is early June now to throw 1/2 his lump sum into his super and then in July throw the other 1/2 in as well. in general terms does this seem a reasonable strategy?
Sorry! late reply, but yes sounds like you're on the right track. Obviously can't give personal advice in this forum, so just make sure you both do your own research or touch base if you would like direct advice. Cheers.
I can see how this may be beneficial if you are getting your employer to salary sacrifice, but I don’t see it beneficial if you contribute post tax. When you withdraw will the they charge you tax even with post-tax contributions? That means you’ve paid tax twice. I actually would like to match my employers contribution into my super for retirement as well as a house deposit. I was under the impression any contributions you made post tax, you could withdraw anytime anyways as it technically is your money, so why does it matter if it is under this particular scheme or not? I’m a little confused and don’t know the best way to go moving forward. I really want to buy a home asap, but I also want to invest for retirement. I’m am almost 41 so time is ticking.
If you make after tax contributions is at good idea to claim this as a deduction in your tax return or does this impact your determination when you go to release the funds?
Hey - yeah this is a big question, and how much you get out of the scheme will vary greatly depending on what you chose here. As I don't know your personal circumstances, I can't tell you what to do. You can set up a one on one meeting with me OR you can talk to our accountant OR you can talk to your accountant. Get this answered before you complete your tax return this year. ckeniry@whatifadvice.com.au
The thing im a bit confused about is this -
The home buying (deposit) only happens at the very start of the home buying process. Since there's only a 15k withdrawal limit per financial year, what happens to the other 35k? Can i withdraw other $15ks in following financial years for the purpose of paying mortgage?
What im trying to say is, is the scheme only for deposits or are there other opportunities to make additional withdrawals to help use up the rest of the cap. I.e mortgage repayments. Hope that make sense
You are able to keep contributing over the years up to the limit of $50,000, but you can only withdraw an amount once. So, if you only contribute $15,000 and you choose to withdraw that out, for the purposes of the FHSS you may as well stop contributing because you will not be able to continue contributing and take that out for the FHSS. Any further contributions will simply become part of your super (the $35,000 in your example). For the maximum benefit of the scheme, you would have to contribute for ~3.3 years and then request to withdraw the full amount possible. I do note that you can carry forward unused super contributions for 5 years... so if you haven't contributed in previous years (and your employer hasn't contributed the full $25K limit mentioned in the video for the 5 previous years, which is currently a $27,500 limit as the limit has changed since this video), you can carry forward contributions. Worth doing some searching and reading on this on the official sites like the ATO.
Mate you look like Tom Selleck , magnum PI
This is amazing, thank you! Just a bit confused with something if you could please help? At 14:00 you mention we can only make one FHSS withdrawal, then that we must purchase within 12 months, but earlier you mentioned we can take out $15,000 each year?
Hey mate,
It isn't "you can take out $15k each year" .. its "You can take out $15k.. IF you are going to contribute and withdraw, within ONE financial year...
IF you contribute in TWO financial years THEN withdraw.. eg 20/21 AND 21/22 - you're able to withdraw $30k..
Does that make sense?
@@WhatIfAdvice I think that makes sense. Did a bit of reading on ato website to try and understand: So, irrespective of how much you contribute each year - taking into consideration the contribution limit.
eg. contribute $17k for 5 years = which is meant to be $85k, but the max withdrawal each year is $15k, so the year you withdraw would be $15k for the 5 years = $75k + associated earnings?
@@hellopopo315 Hmmm not quite...
The point is.. the government is giving a benefit.. but its capped... the CAP is $15k in year 1 or $30k over multiple years..
So in your scenario.. you contribute $17k for 5 years.. you'd go to take money out (call it $75k) and the government would only let you take out $30k!
Also say someone contributed $25k in 1 year (maybe they are self employed).. the limit for them would be $15k..
HOWEVER lets say someone contributed $25k in June, then $5k in July (across 2 financial years, THEN they could take out $30k - of course this example needs tax/earnings etc to be worked out..
What If Advice Makes sense! Thanks so much for this!!
@@WhatIfAdvice Makes sense! Thank you!
1. Can I save for less than a year like 6 months and pull out the funds.
2. Does the home loan application have any negative effect due to a withdrawal from Super?
Thanks for the informative video. Appreciate it.
1. Yes you can - just check the limits for under 12 mths (It was $15k, I haven't checked recently)
2. I don't believe it affects the home loan application, it should be viewed as savings. You aren't pulling out your own super, you're pulling out your savings, I've never heard of any lender have an issue.
Just check timings, ie when you need to 'prove you have funds to settle'.
Do I need to wait for entire two financial years to end to put a determination with ATO or can I do within second financial year
No - you don't need to wait the 2 years - its just that if you go over 'two financial years' you can maximise how much you can take out... you could do it over 1 month if you wanted to - but you'd be limited to the amounts (currently $15k within 1 financial year, or $30k over 2 financial year. Financial year = 1 July to 30 June
Hey Conaill, do you know if it's possible to combine the intent to claim personal contributions as a tax return and the FHSS? Would there be any benefit to doing this?
Hi @Raziel433 Yes - at 4:25 when we mention the other method of contributing to your super, instead of salary sacrificing, it is the same thing as when you mention "Intent to claim personal contributions".
Hope that clarifies your questions otherwise I highly recommend emailing our new in house accountant at zdenman@whatifadvice.com.au
@@WhatIfAdvice I must've missed it. I'll rewatch the video and see. Thanks for the reply!
Important to note that you can only withdraw 85% of concessional (pre-tax) contributions (and 100% of non-concessional contributions). So 15% of concessional contributions locked away until retirement. This may have changed since the video was initially published.
No.. i thought the 15% is lost to tax.. you'd technically withdraw 100% of your concessional contribution -15% tax.
Do i have to tell the ATO before starting this FHSS?
No - you can just start making extra contributions. Just don't forget to keep your own records!
You are missing one important factor of only 85% of voluntary contributions that tax deduction is claimed.
Hey mate I have a question, when depositing the money is it just extra money that is ontop of the normal contributions ? Ie I don’t need to specificy it’s FHSS contribution ans just a salary sacrifice type of situation ?
Hey mate - no you don't need to specify. Just keep track of them. The FHSS clients i've been helping lately - we've found the ATO's pre-populated amounts have been accurate - but I'd still keep track.
@@WhatIfAdvice thanks for the reply.
Would it be safe to assume, if I track my salary sacrifice and use a compound interest rate of 3.1% x 85% x (tax % -30%) that would then be my general amount I can withdraw ? I understand that the ATO will provide this final number when attempting to withdraw but how is the best way to track as I go ?
@@Dude6311 that is quite a specific question. I recommend contacting our new in house accountant at zdenman@whatifadvice.com.au and book a consultation to assist
Can I save this way without actually planning to buy a home?
Yes - simply making concessional contributions each year into your super via salary sacrificing or direct deposit + lodging an 'intent to claim a tax deduction' form with your super fund will mean those amounts are only taxed at 15% (Instead of your marginal tax rate)
Not available on land, just house contract. So you cant owner build.
Takes 3 years to save 45k
You forgot to mention two very important details (or maybe the rules have changed since your video):
1 - The tax saving your receive with your volutary contributions are only up to a cap ($27,500 this year) and this cap is the total between your contributions and your employers. So if your employer super contribution totals to $15k and you decide to voluntarily contribute an extra $15k in the same year, I believe the difference of $2.5k wont receive the tax saving
2 - While the total voluntary contributions you can make are up to $15k per year, that doesnt mean you can withdraw the entire $15k as part of the FHSS. You can only request 85% of your voluntary contributes. So if you contribute $15k, you can 15% tax on that equating to $12,750 in your super, then you can only request 85% of that equating to $10,388. This leaves an extra $1913 in your super fund
Happy to be corrected if im wrong
I think you are wrong on the second point. The 85% you can claim is your claims minus super tax. So you don't leave any in super you just cant get the 15% that you've already paid towards tax. So a 15,000 contribution that you claimed on tax would get you $12750 + SIC rates in return. Plus the tax claim which is generally going to be around $5000 in tax returns. So for a saving of 15000 youll get about 17000+ SIC rates - your marginal tax rate (-30%)
If you decide to not claim your contributions on tax (idk why you wouldnt..) you can get 100% of your contributions back for the deposit + the SIC rates.
@@nicknick2236 yep you’re right, my second point was incorrect.
Another thing which might trip people up is that the FY contributions depends on when your super fund receives the money, not which pay cycle you contribute. So example I contribute my June 2023 pay, but my work didn’t pay it to my super until July, so it fell into the 23-24 FY
@SomeAlex1 yep very true, I contribute once I've been paid so it takes about a day to go in, better way to do it I think
@SomeAlex1 yep very true, I contribute once I've been paid so it takes about a day to go in, better way to do it I think
@@nicknick2236 I think if you contribute your post-tax income into your super, then release it for the FHSS, you’re not able to claim a tax deduction on that contribution. I believe you have to salary sacrifice your income (ie your employer pays directly into your super instead of you paying you) into your super to take advantage of the tax saving.
Though I’m not too sure about that, it’s not clear on the ATO website, and when I called them to ask they couldn’t even tell me because they consider that “tax advice”
All this work to get your own money
good idea NOT!
most peoples super is gone with fees or the government took it.
🇦🇺🐨🖕