FIF tax on Hatch

Hey guys, just trying to get my head around some scenarios on FIF rules in NZ.

Scenario 1:

1. In year 1, I deposit 60k into Hatch and obviously i ll need to pay FIF tax because its over 50k into Money market fund. In this year, I didnt invest in anything just purely deposit.

2. In year 2, still not buying any stock. Does FIFstill applies? If so, doesnt your money just keep getting eaten away until you are below 50k??!!

Scenario 2:

1. In year 1, I deposit 45k into Hatch and buy some stocks. Top up another 10k during the year and now i ll need to pay FIF because its over the 50k limit.

2. In year 2, no deposit or any actions at all in Hatch. Does FIF rule still appies?

thanks!