Issue of a release authority
After you have made a valid release request, we'll issue a release authority to your super fund(s) requesting they send your FHSS release amounts to us.
Withholding tax and offsetting debts
Before we send to you any amounts released by your super fund to you, we will:
- withhold the appropriate amount of tax
- offset the remaining amount against any outstanding debts with the ATO or another Commonwealth government agency you may have.
We will nominate a withholding rate in your release request based on either:
- your expected marginal tax rate (including Medicare levy) minus a 30% tax offset or,
- 17%, if we're unable to estimate your expected marginal rate.
You can still vary the withholding rate in the release request if you believe your circumstances have changed.
The tax withheld is calculated on your assessable FHSS released amounts and will help you meet your end of year tax liabilities.
Timing of release
In most cases, it will take between 15 and 20 business days for your fund to release your money and for us to pay it to you.
Payment summary
We will send you a FHSS payment summary at the end of the financial year. It will show your assessable FHSS released amount, which comprises:
- concessional contributions
- associated earnings on both concessional and non-concessional contributions
- the amount of tax withheld.
We will only issue your payment summary once all your FHSS amounts have been released by your super funds. This could be several weeks after the end of the financial year.