Posted on 04/03/2018
Whether you are a first home buyer or committed to downsizing, new developments in legislation affecting superannuation are definitely worth knowing. In this article we introduce what this legislation is and what you can do to take advantage of it. Please feel free to contact us at AMEGA Financial Solutions for further information.
First Home Super Saver Scheme
After its legislation received royal assent in December 2017, the First Home Super Saver (FHSS) Scheme commenced on 1 July 2017, allowing those who have never owned an interest in real property in Australia to save for their first home in the tax-advantaged superannuation landscape. Clients can make up to $15,000 per year ($30,000 in total) to help purchase their first home. Those wishing to remove these contributions for first home purchasing will need to make an application to the Commissioner of Taxation for a First Home Super Saver (FHSS) Scheme determination using the approved form, accessible on the ATO website from 1 July 2018. Once accepted, the ATO will send a release authority to us verifying the withdrawal amount which will be paid to the ATO and then passed to the client.
Downsizing Super Contribution
Also receiving royal assent, the legislation that allows older Australians to contribute proceeds from the sale of their former residence to super. This evaluation generally applies to those who contract to sell an eligible residence from 1 July 2018, and who can then contribute eligible sale proceeds of up to $300,000 each to super on or after reaching age 65. An approved ATO form must be supplied either prior to or when the DSC is completed.
General Advice Disclosure: This document contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. If you decide to purchase or vary a financial product, your financial adviser, AMP Financial Planning and other companies within the AMP Group may receive fees and other benefits. The fees will be a dollar amount and/or a percentage of either the premium you pay or the value of your investment. Please contact us if you want more information.