From 15 September 2024, in limited circumstances the ATO may return FHSS released amounts to super funds.
This is one of several changes to the FHSS scheme.
Conditions of a repayment
A fund will be able to accept a FHSS repayment from us when a release authority:
- has been issued to the fund.
- is revoked after the fund has sent the amount to us.
The repaid FHSS amount is treated as a rollover. This should not be recorded as a reversal of a transaction on the fund's registry.
Before making a repayment, we will check:
- the member's account is not closed.
- the member's account is in the accumulation phase.
- the fund is not a defined benefit fund or constitutionally protected fund and can accept contributions, where the FHSS amount is not being returned to the original super fund.
Note: Members can make a new FHSS release request with us. This may result in another release authority from us for the member. The member can do this as soon as their original request is processed.
How we notify about a repayment
We will issue a refund notification letter to the relevant fund through Online services for business. The letter will include the:
- member's name
- fund's name
- Australian business number (ABN)
- unique super identifier (USI)
- member account number
- amount being returned
- date of original release authority issued to original super fund.
We will advise the member that their FHSS repayment will happen.
How we make a repayment
Where a member still holds a super interest in a fund, we will make the repayment to the fund’s relevant bank account on the fund detail register.
The amount can be credited to any super interest the member holds with the fund, provided:
- the super interest is held by the member
- the repayment can be paid out under a later FHSS release authority.
When a fund cannot accept a repayment
If the fund that originally released the FHSS amount is unable to accept the repayment, it should contact us through the Super Enquiry Service. Use the FHSS classification with 'FHSS returning monies' in the subject heading and provide:
- the FHSS released amount
- the service period start date
- component information
- tax-free component
- KiwiSaver tax-free component
- taxable component – taxed element
- taxable component – untaxed element
- preservation amounts
- preserved amount
- KiwiSaver preserved amount
- restricted non-preserved amount
- unrestricted non-preserved amount.
The fund can return the FHSS amount to us once we have responded through the Super Enquiry Service.
We will then:
- pay the returned FHSS amount to an alternate fund held by the member
- issue a refund notification letter to the alternate fund, including the relevant component information provided by the originating fund.
How to repay money to the ATO
A fund can return money to us after advising us, through the Super Enquiry Service, that it is unable to accept repayment of the FHSS amount.
Funds must pay by electronic transfer to our SuperStream bank account. The details are:
Bank – Reserve Bank of Australia
BSB – 092-009
Account – 12178-1
Title – Australian Taxation Office Official Administered Receipts SuperStream Account.
The data and money must be linked by a unique payment reference number (PRN). This PRN needs to match the original release authority.
The PRN and payment must be identical (case and space sensitive). Where they are not, we can't allocate the payment.
Funds cannot pay by cheque.
Communicate with us
Funds communicating with us regarding repaid FHSS amounts should do so through the Super Enquiry Service. Use the FHSS classification and include 'FHSS returning monies' in the subject heading.
FHSS repayment correspondence in Online services for business has the same permission level as compassionate release of super correspondence. A dedicated FHSS prefix label allows funds to identify and manage this correspondence.