When you make a withdrawal from the First Home Super Saver (FHSS) scheme, the assessable first home super saver released amount may be excluded from certain income measures, such as:

• Medicare levy

• Division 293 income

• Child support formula

• Child care subsidy

• Super co-contribution

• Family tax benefit

• Study and training support loans

When using the First Home Super Saver (FHSS) scheme, it’s important to understand how it interacts with study and training support loans like HECS-HELP. These loans are repaid through the tax system once your income exceeds a certain threshold for the financial year.

We have summarised some key points below from the ATO website, but you should go directly to the source when considering these topics!

Here’s how different components affect your assessable income and repayments:

• Salary sacrifice contributions to your super (including for the FHSS scheme) are made from pre-tax income, which reduces your taxable income—this may lower the amount of tax you pay overall.
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• However, for HECS-HELP repayment purposes, salary sacrifice contributions are included in your HELP repayment income (which is broader than just taxable income). So salary sacrificing alone won’t reduce your HELP repayment obligation.
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• That said, returns earned within the FHSS scheme—inside your super fund—are not included in your assessable income. This means you can potentially grow your savings for a home without increasing your income for tax or HELP repayment calculations.

It’s always best to speak to a professional tax accountant to ensure you are getting proper tax advice when discussing your income and the FHSS.

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As always, before making financial decisions, please do your own research and read the Pearler Super product disclosure statement along with the TMD and other important documents listed here.

If you have more questions or would like to share any feedback, please reach out to us via our live chat or email us at help@pearler.com.

Remember, that this is general in nature and doesn't constitute personal advice. Reach out to a financial professional when considering making financial decisions. As details may change, we recommend checking the information directly from the source, including the ATO website. All figures and data in this article were accurate at the time it was published. That said, financial markets, economic conditions and government policies can change quickly, so it's a good idea to double-check the latest info before making any decisions.