What you must do after release
When you release amounts using the FHSS scheme, within the applicable time limits you must:
- either enter a contract to purchase or construct residential premises in Australia or recontribute the required amount to your super fund
- notify us which action you have taken and when.
You must do both within the specified time periods.
If you don't satisfy these requirements, you will be required to pay FHSS tax. This FHSS tax is in addition to any income tax you need to pay on the FHSS released amount.
The FHSS tax is calculated as 20% of your assessable FHSS released amount.
When you need to pay FHSS tax, we will send you a notice of assessment which tells you:
- the amount of FHSS tax payable
- the due date for payment
- how to pay it.
Example: first home super saver tax
George requests the release of $26,100 under the FHSS scheme, of which $20,100 of the released amount is the assessable FHSS released amount. We withhold $1,809 and release $24,291 to George.
George subsequently decides not to purchase a home.
Since George has not, and will not be, sign a contract to purchase or construct a home, he needs to recontribute the required amount to his super fund. If he does not recontribute it he will need to pay FHSS tax.
George chooses to keep the money. Therefore, he is required to pay an additional FHSS tax of $4,020 ($20,100 × 20%).