Your calculation for FHSSS Tax benefit table for year one doesn't seem to quite add up with 15% after tax. Could you please elaborate where does 13% come from?
The table shows the difference between saving in a bank account vs super and the benefit of FHSSS using a government website. (Trying to provide accesible solutions for those not bothered to login via our kit / schedule a call)
(They need to update their calculator as it doesn't account for $50,000 limits and carry forward contributions)
However, it's a good general guide.
Not sure what you're referring to regarding 13%.
Money gets taxed at 15% on the way in.
Your earnings are calculated using a 'deemed' rate of return, not the actual rate your super fund delivers. The deemed rate is based on the ATO's shortfall interest charge (SIC) rate.
On the way out the FHSSS gets taxed, with a 30% credit which is VERY appealing for many with Stage 3 tax cuts as you only then pay medicare levy.
If you'd like a tailored calculation for your circumstances just hit the link :).
Alternatively just send us an email. We deal with FHSSS matters daily so it will only take us a few minutes to help.
I am referring to the last paragraph table in year one $12,596. Since we are not allowed to withdraw $15,000 as we are being taxed at 15% in our super, I am just confused with the calculation.
The amount that we are allowed to withdraw after deducting15% of $15,000 isn't = $12,750?
So, If I compare $12,596 vs $12,750, where does $154 difference come from?
You can claim to withdraw $12,750 of your $15,000 however...
As per my previous response there is interest earnt on the money while inside and a tax on the way out of your marginal tax rate + medicare levy - 30% offset.
This is why it's slightly lower than $12,750 in the example provided by the government. They have provided a real net post taxation on the way out figure.
Still better than a savings account!
Jump into our course and watch the online masterclass as we cover examples or schedule a call for a tailored approach.
Your calculation for FHSSS Tax benefit table for year one doesn't seem to quite add up with 15% after tax. Could you please elaborate where does 13% come from?
The table shows the difference between saving in a bank account vs super and the benefit of FHSSS using a government website. (Trying to provide accesible solutions for those not bothered to login via our kit / schedule a call)
https://www.csc.gov.au/assets/fhsss-calculator/index.html#/calculator/table
(They need to update their calculator as it doesn't account for $50,000 limits and carry forward contributions)
However, it's a good general guide.
Not sure what you're referring to regarding 13%.
Money gets taxed at 15% on the way in.
Your earnings are calculated using a 'deemed' rate of return, not the actual rate your super fund delivers. The deemed rate is based on the ATO's shortfall interest charge (SIC) rate.
On the way out the FHSSS gets taxed, with a 30% credit which is VERY appealing for many with Stage 3 tax cuts as you only then pay medicare levy.
If you'd like a tailored calculation for your circumstances just hit the link :).
Alternatively just send us an email. We deal with FHSSS matters daily so it will only take us a few minutes to help.
I am referring to the last paragraph table in year one $12,596. Since we are not allowed to withdraw $15,000 as we are being taxed at 15% in our super, I am just confused with the calculation.
The amount that we are allowed to withdraw after deducting15% of $15,000 isn't = $12,750?
So, If I compare $12,596 vs $12,750, where does $154 difference come from?
I see.
You can claim to withdraw $12,750 of your $15,000 however...
As per my previous response there is interest earnt on the money while inside and a tax on the way out of your marginal tax rate + medicare levy - 30% offset.
This is why it's slightly lower than $12,750 in the example provided by the government. They have provided a real net post taxation on the way out figure.
Still better than a savings account!
Jump into our course and watch the online masterclass as we cover examples or schedule a call for a tailored approach.