First Home Super Saver Scheme

(not yet legislated)

Saving for a deposit on your first home?

The Government proposed that from 1 July 2017, individuals can make voluntary contributions (concessional or non-concessional) of up to $15,000 per year and $30,000 in total, to their superannuation account to purchase a first home. 

If this proposed legislation does get passed, it would mean you could accelerate your savings by at least 30% using your superannuation as a “supercharged savings account”.

The finer detail

  • You can make to make voluntary deductible (before-tax) contributions. Voluntary deductible contributions include: salary sacrifice arrangements through an arrangement with your employer. If you’re self-employed or your employer does not offer salary sacrifice, it includes personal super contributions where a tax deduction has been claimed.
    Non-concessional (after tax) contributions can also be made within the scheme. Although you will not benefit from the potential tax concession on the contribution. Earnings on these contributions will benefit from the concessional rate of tax in superannuation and the higher returns often realised inside superannuation. 
  • Only contributions from 1 July 2017, along with deemed earnings can be withdrawn for a home deposit for first home buyers, this means you won’t be able to withdraw contributions made prior to 1 July 2017.
  • Withdrawals for concessional contributions will be taxed at marginal tax rates less a 30% offset and allowed from 1 July 2018. Non-concessional amounts that are withdrawn will not be taxed.
  • Your existing superannuation contribution caps will continue to apply.
  • This scheme has only been proposed at this stage and has not yet been passed.

Downsizing home into Superannuation

(not yet legislated)

Kids moved out? Are you aged 65 or over and thinking of selling your home for a sea change or to downsize?

The Government has proposed that from 1 July 2018, people aged 65 and over will be able to make a non-concessional (after-tax) contributions into their superannuation of up to $300,000 from the proceeds of selling their home.

This proposed legislation will assist people aged 65 and over who are currently unable to contribute all or any proceeds from the sale of their home into superannuation because of the existing restrictions and caps.

The finer detail

  • It must be for the sale of your primary residence, which you have lived in for at least 10 years.
  • If you’re a couple, both of you can take advantage of this this scheme for the same home.
  • These contributions will be exempt from the existing age test, work test and the $1.6 million super balance test for non-concessional contributions under the new special downsizing cap.
  • Any change in your superannuation balance as a result of this proposed legislation, will count towards the Age Pension assets test.
  • The contributions will not be exempt from the $1.6 million transfer balance cap.
  • This scheme has only been proposed at this stage and has not yet been passed.