“A busy couple of days in the world of super”
Finally some good news from the ATO
The ATO has generously extended the due date for lodgement of 2016 SMSF annual returns to June 30 2017.
The ATO have recognised that the 2016 budget changes to superannuation and SMSFs were a lot more complex than many had allowed for. The extension will allow practitioners additional time to provide advice to clients on the upcoming reforms.
A collective sigh of relief all round….
Budget takes outs
There are two critical changes arising from the budget that affect super.
- Down-sizing incentive for retirees
In a bid to address the housing shortage and help Australian’s over 65 live in more suitable accommodation the government is allowing them to put up to $300,000 per person from the sale of the family home into voluntary super contributions.
A person aged 65 or over can make a non-concessional contribution into superannuation of up to $300,000 from the proceeds of selling their principal residence. They must have owned their principal residence for at least 10 years. This measure will apply from 1 July 2018 and is available to both members of a couple for the same home.
These contributions are in addition to existing rules and caps and are exempt from the age test, work test and the $1.6m total superannuation balance test for making non-concessional contributions.
As always with the government there is catch. The proceeds from the sale will be subject to Centrelink income and assets test. So take care.
- Salary Sacrificing into the First Home Super Saver Scheme.
Young Australians looking to save for their first home have been given an added financial incentive by the government with the launch of the First Home Super Saver Scheme.
Individuals will be able to make voluntary contributions into their superannuation of up to $15,000 per year and $30,000 in total, to be withdrawn subsequently for a first home deposit. The contributions can be made from 1 July 2017 and must be made within an individual’s existing contribution caps.
From 1 July 2018 onwards, the individual will be able to withdraw these contributions and their associated deemed earnings for a first home deposit. The withdrawals will be taxed at an individual’s marginal tax rate, less a 30% tax offset.
Under this new first home super saver scheme, both members of a couple can take advantage of this measure to buy their first home together. The scheme is intended to provide an incentive to enable first home buyers to build savings faster for a home deposit, by accessing the tax advantages of superannuation.
Quite how they can afford to salary sacrifice that amount though is a moot point. Nonetheless every bit counts.
Naturally if you have any queries about those I am only too happy to help – just contact me here.