The Government has released details of the Federal Budget for 2017 and the following proposed measures may have an impact on your superannuation:
The introduction of the ‘First Home Super Saver Scheme’ from 1 July 2017 will allow first time home buyers to salary sacrifice up to $15,000 per annum to their superannuation, up to a maximum of $30,000 in total, to be used to save for a home deposit. These contributions will be taxed at 15% by the super fund when they are received. Withdrawals can be made any time after 1 July 2018 and will be taxed at marginal tax rates less a 30% tax offset. Couples saving for a home can contribute $30,000 each into their super to reach their deposit goal. The release amount will be calculated by the ATO using a deemed rate of return. All of these contributions are subject to the contribution caps already legislated.
You can use the Government’s First Home Super Saver Scheme Estimator to view any potential benefit of the scheme.
From 1 July 2018, individual Australians aged 65 and over will be permitted to contribute up to $300,000 from the sale of their home to superannuation, provided they have owned the home for at least 10 years. These contributions will be counted as assessable assets and will be subject to the legislated transfer balance cap.
For further details of the above announcements and/or other measures announced but not listed here, please go to the Federal Budget Papers.
Please note that these are proposed changes only and have not yet been passed by parliament. Club Super will keep you informed if and when these proposed changes are legislated.
If you have any questions or would like to discuss how the above measures impact you, please contact Club Super on 1300 369 330 or firstname.lastname@example.org.