Has the Government made a start on housing pressures?
In late November, the Government had a win as the Senate passed two measures to improve housing affordability .
The changes will provide a small incentive for some older Australians to downsize, and assist first home buyers to save a deposit faster and help to overcome one of the barriers for getting into the housing market.
Persons aged 65 or over who downsize by selling the family home will be able to make a non-concessional contribution to super of up to $300,000 from the proceeds. These contributions won't be subject to meeting any work test, will be in addition to the current non-concessional cap and won't be subject to the $1.6m balance test for making non-concessional contributions. If a couple, then potentially $600,000 could be contributed to super.
2. First Home Super Saver Scheme
At the other end of the housing market, first home buyers will be able to make voluntary salary sacrifice contributions into super, and withdraw these together with associated earnings for a deposit for their first home.
For more information read the complete article at http://www.switzer.com.au/the-experts/paul-rickard/paul-rickard---thursday-draft20171214/