Check out this video to learn about *FHSS Scheme Changes from 15th of September 2024 (Australia)* This means mistake #4 discussed in this video can be mitigated. kzitem.info/news/bejne/yKlur3ZsrXNzdJg&ab_channel=RuiShi
@OZRuiShi
5 ай бұрын
Thanks for watching ❤what did you take away from this video?
@1024824
5 ай бұрын
Great Video. We have been going for the sprinter approach :) . It has been a good saving scheme for last couple of years as you forget its being salary sacrificed. I have just learned about the earnings being determined by the SIC rate and am super happy with it being at 7.3% and extended at same rate for April-June. better then the saving accounts - macquarie 5.5% and rabbo 5.75%
@OZRuiShi
5 ай бұрын
Hey there! I'm glad to hear the sprinter approach has been beneficial for you. 😊Just a heads-up: Your superfund's return is your money's actual return. The SIC is a rate the ATO applies when deciding the amount to release to you. For example, if your super generates 5%, the ATO will use the non-FHSS part of your super to make up the difference when releasing funds to you. Thanks for watching, and stay tuned for more insights! x
@RaulNigli
18 күн бұрын
Rui, I've just taken funds out using this scheme. There is a deadline of having to tell the ATO that you've signed a contract or within a certain time, or they threaten to tax the crap out you. I was late to tell them because I didn't know I had to tell them. Now I'm sweating beads because I'm going to lodge my tax return and don't know what to expect.
@RaulNigli
18 күн бұрын
community.ato.gov.au/s/question/a0J9s0000001AA3/p00015366 Is one example
@OZRuiShi
17 күн бұрын
Don't be overly stressed. You can still use your MyGov ATO service to inform them, even if you're late. Provide a good reason for the delay, as they will ask. I've heard of people in similar situations who were able to resolve it. For example, someone who was sick and in the hospital without internet access to notify the ATO had their explanation accepted, and there were no issues. Good luck!
@OZRuiShi
17 күн бұрын
That ATO answer is perfect. Follow it! 😊
@roger1613
4 ай бұрын
I understand about you mentioning that it is better (tax advantage) to spread the $50000 over 10 financial years ($5000 per financial year) rather than do $15000, $15000, $15000, $5000 in 4 financial years but imagine how much more the property price might be from the 6 year difference... Using 2024 as an example for doing it over 4 years, a 20% deposit required in 2028 might be $250,000 (based on a $1.25m property) BUT if you use the 10 year method you mentioned, a 20% deposit in 2034 might be more like $350,000-$400,000 (if we are to believe that the same property might be more like $1.75-$2m in 2034). Therefore, it wouldn't be worth it to do it over 10 financial years vs 4 financial years if you believe property prices will continue to rise (which is almost certain knowing the high demand in Australian property). You would rather get it over and done with asap even if it means you might be missing out on some tax savings because it cannot be compared to how much more you will have to cough up in a deposit for a property by taking longer to have the funds ready.
@OZRuiShi
4 ай бұрын
Hey there! You've raised a great point. If someone is prepared and financially able to enter the market sooner, they definitely should take that step sooner rather than later.My mention of a 10-year timeframe wasn't to suggest that people should wait that long before entering the property market. Instead, I meant that if someone knows they don't want to or won't be able to buy for a longer term-whether that’s in 5, 7, 10, or even 15 years-they might consider using the FHSSS during that matching period. Hope this makes sense. x
@Iamwunderbar
3 ай бұрын
You can only pull out a maximum of $50,000.00 put in your super over the last 5 financial years. Depositing it over 10 years equally will lead to you only being able to withdraw $25,000 minus taxes, fees, etc..
@OZRuiShi
3 ай бұрын
Hey there, it is "up to a total of $50,000 contributions across all years.", not the last 5 financial years. 😊 www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/first-home-super-saver-scheme
@RaulNigli
18 күн бұрын
I think the 20% FHSS tax should be one of the tricks the ATO plays on you.
@OZRuiShi
17 күн бұрын
"We will then determine whether you should be liable for the 20% FHSS tax based on your particular circumstances. If we do determine that you are liable, a separate FHSS notice of assessment will be issued to you." According to the link in your previous comment.
@MephistoRolling
5 ай бұрын
I'm not a big fan of the scheme. The extra hassle to potentially make 15 percent more. But if done over many years most people will be at higher tax brackets on release, so reducing that benefit. Some supers also charge fees, reducing it further again. Maybe it will be better in the future.
@OZRuiShi
5 ай бұрын
Hi there!🖐️ Thanks so much for sharing your thoughts. You've really highlighted some important complexities and potential downsides of the scheme, and it's crucial to weigh these carefully since everyone's financial situation is unique. I wanted to share that this scheme is evolving, with some changes taking effect from 20/09/2024. I'm preparing a video to cover these updates in detail. If you're curious about how these changes might address your concerns, I'd love for you to check it out. Stay tuned, and thanks again for your valuable input! 😀
@Cherry-wz8uq
3 ай бұрын
How long does it take to receive a determination? Is it instant or does it take time to process if so how long?
@OZRuiShi
3 ай бұрын
Hi there, the processing time for a First Home Super Saver Scheme (FHSSS) determination is typically quick and often instant when submitted online through your myGov account. This is because the necessary information is already available and the calculation is straightforward. However, the time can vary depending on the completeness of your application and whether additional information is required. If any issues arise or further information is needed, the processing time might extend beyond the instant determination. Check out this ATO Community page where it discusses the expected processing times and procedures for FHSSS applications. community.ato.gov.au/s/question/a0J9s0000001FHC/p00035029 Hope this helps. x
@Cherry-wz8uq
3 ай бұрын
@@OZRuiShi thank you so much for the reply 🙏 I’ve recommended your channel to my friends!
@OZRuiShi
3 ай бұрын
@@Cherry-wz8uq Thank you so much! I really appreciate you recommending my channel to your friends. Your support means a lot! 😇
@suprise66
Ай бұрын
So is there no tax benefit to doing an after tax non concessional contribution? Like If i put in 15000 of my after tax income i get no benefit?
@OZRuiShi
Ай бұрын
Hi there, thank you for your question! There are no tax benefits for making an after-tax non-concessional contribution. While you do get to withdraw the associated earnings from your super, there are no tax benefits for the amount you put in. Hope this clarifies it! 😊
@Mnmp96
5 ай бұрын
Hi Rui, nice video! I am wondering if I need to register or do anything for my super contribution to categorise as funds for FHSS? In other words, how do I ensure the funds that I am transferring personally be eligible for withdrawal? Or do I simply just transfer the money to my Super and lodge a notice of intent and that's it? Thank you!
@OZRuiShi
5 ай бұрын
Hey there! Thanks for your question! You've got it right-no need to register or do anything special, just transfer the funds to your Super and lodge a notice of intent to claim a tax deduction. Just make sure you get an acknowledgement letter from your superfund confirming your notice of intent has been successfully processed. Hope that helps! x 😊
@Mnmp96
5 ай бұрын
@@OZRuiShi it does! Thank you 🙏🏻
@gund5310
3 ай бұрын
Hi, during the whitdrawal of $50000 for FHSSS do i need to pay another tax ? 20 %?
@OZRuiShi
3 ай бұрын
Hi there, if the $50,000 represents concessional contributions you made throughout the years, then yes, the tax rate on that will be your marginal tax rate, including the Medicare levy, minus a 30% tax offset. If it was from non-concessional contributions, then there is no tax. Tax is applied in the financial year in which you requested the release, not when you receive the money. Hope this helps. x Check out the ATO's FHSS Scheme for more detailed information. www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/first-home-super-saver-scheme#ato-ReceivingyourFHSSamount
@RaulNigli
18 күн бұрын
Rui, what does minus 30% tax offset mean? @@OZRuiShi
@sushantpramichya
4 ай бұрын
Hi Rui, thank you for this video. So I am planning to contribute 15k to my super via salary sacrifice by the end of this fiscal year. Do I need to submit the notice of Intent to claim a tax deduction on the 15k?
@OZRuiShi
4 ай бұрын
Hey there! If you're planning to salary sacrifice, then you don't need to submit a notice of intent to claim a tax deduction. However, if you're making a personal concessional contribution, you will need to submit that form. I've covered the differences between these two options in a video called why I don't use salary sacrifice for FHSSS. I highly recommend checking it out for more details! kzitem.info/news/bejne/k6ljtpids3OdgHo
@sushantpramichya
4 ай бұрын
@@OZRuiShi Thank you for this information. So if I am contributing in salary sacrifice can I contribute upto 15,000 a fiscal year for the FHSSS or 15,000+15%= 17250 for the fiscal year? If I am making a personal concessional contribution how much can I contribute 15,000 or 17250?
@yaseen2844
4 ай бұрын
5:07 - The formula you have mentioned, I would like to clarify, will I be entitled to be taxed 30% on the salary Sacrifice done amount during the FY tax assessments? Ex: 10 K I made contributions to Super through employer salary Sacrifice ( purpose of FHSS) in the super account I was seeing contribution tax 15% done for the 10 K ( -1500) . When I do the withdrawal in FY 24 for FHSS, Will I be getting additional tax calculated based on my marginal income? Ex: consider 130 K as annual income Appreciate your efforts on explaining this !
@OZRuiShi
4 ай бұрын
Hey there, the cap for FHSSS is $15,000 per financial year. This amount includes the 15% tax that will be taken out, so it is not $15,000 +15% tax. Just be mindful of your concessional contribution cap so that your salary sacrifice plus employer contribution do not go over that cap. 😊
@OZRuiShi
3 ай бұрын
Yes, when you withdraw, the salary sacrifice you made in the past will be added to your other income and get taxed at your marginal tax rate, but you receive a tax offset of 30% on the salary sacrifice amount.
@pinjenwang1256
6 күн бұрын
I have a question: I transferred $18000 to my super and claim tax deduction in same financial year As i calculate $18000 after take off superannuation tax 15% that would be more than maximum amount limit $15000 However, when i made determining it shows maximum amount for release is $12750 is there any mistakes i have made? Why the maximum release limit eventually calculated as $15000* 0.85 not $15000?
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