Personal Tax Tips - First home super saver scheme
From 1 July 2017 individuals will be able to make voluntary contributions to superannuation of up to $15,000 per year and $30,000 in total, to be withdrawn for the purpose of purchasing a first home. Both voluntary concessional and non-concessional contributions will qualify.
These contributions (less tax on concessional contributions) along with deemed earnings can be withdrawn for a deposit from 1 July 2018. When withdrawn, the taxable portion will be included in assessable income and will receive a 30 per cent offset.
Features associated with this measure include:
- contributions will count towards existing concessional and non-concessional contribution caps
- earnings will be calculated based on the 90 day Bank Bill rate plus three percentage points
- the ATO will administer this scheme, calculate the amount that can be released and provide release instructions to superannuation funds.
To discuss this or any property investment matter contact us now.