Loophole in COVID 19 early access to super and deposit saving in the First Home Super Savings Scheme if saving with a partner

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Malcolm Macleod

Hey everyone,

Just wanted to get your thoughts on a possible loophole for saving a house deposit quicker using the First Home Super Savings Scheme (FHSSS) and the COVID-19 Early Access to Super (COVID-EAtS).

I have asked the ATO customer service people if taking $10000 due to the COVID-EAtS would effect the money i have salary sacrificed for the FHSSS. They said no.

so consider this as an example:

i am saving for a house with my spouse using the FHSSS.

We have deposited $12,000 into my partners super from our cash savings, (after tax) some time ago.

Meanwhile i have been salary sacrificing into my super currently reaching a total of $20,000.

Therefore we can theoretically withdraw $32,000 for a house deposit (not including super tax or interest in calculation).

Now if i was to withdraw $10,000 from my total superannuation using the COVID-EAtS criteria this financial year, and another $10,000 next financial year and deposited each lot of $10k into my spouse’ super fund. it would take her contribution total past the maximum $30,000 for the FHSSS.

So if my FHSSS funds are not effected by the COVID-EAtS withdrawal then i still maintain access to $20,000 for the FHSSS.

Giving us a total house deposit withdrawal access amount of $50,000 (before super tax and interest/losses) without physically contributing any extra cash.

In addition we will receive to lots of $500 from the government co-contribution for each lot of $10k we deposit into my partners account in seperate financial years.

for us there would be other tax benefits, as well as from super unit price appreciation out of this market low that should give us a further edge.

THOUGHTS?