Further ‘affordable housing’ measures

Parliament has passed the legislation allowing first home buyers to save for a deposit inside superannuation through the First Home Super Saver Scheme (FHSSS), and also allowing older Australians to ‘downsize’ and then contribute the proceeds of the sale of their family home into superannuation.

From 1 July 2018, a first home buyer will be able to withdraw voluntary superannuation contributions they have made after 1 July 2017 (a maximum of $15,000 from one financial year and $30,000 in total across all years) along with a deemed rate of earnings, to help buy their home.

Also, from 1 July 2018, when Australians aged 65 and over sell their main residence they have owned for at least 10 years, and the exchange of contracts for the sale occurs on or after 1 July 2018, they may contribute up to $300,000 from the proceeds into their superannuation accounts, over and above existing contribution restrictions. Both members of a couple may take advantage of this measure, together contributing up to $600,000 from the proceeds of the sale into superannuation.

• If you are considering doing this, please make an appointment with one of our Kothes superannuation specialists who are part of Gary Skelton’s financial planning team to discuss whether you qualify.