The ATO has reminded members of SMSFs that they will be able to use their voluntary super contributions to assist with buying their first home, or to make a contribution into their super from the proceeds of the sale of their main residence (under changes passed by Parliament in December 2017).
The First Home Super Saver Scheme
The First Home Super Saver (FHSS) Scheme allows SMSF members to save faster for a first home by using the concessional tax treatment available within super.
From 1 July 2018, SMSF members can apply to release certain voluntary concessional and non-concessional contributions made from 1 July 2017, along with associated earnings to help buy their first home.
There are various conditions that need to be met in order to take advantage of this measure – contact our office if you would like to know more.
The Downsizing Measure
SMSF members who are 65 or over and exchange a contract for sale of their main residence on or after 1 July 2018 may be eligible to make a downsizer contribution of up to $300,000 into their super. This downsizer contribution won’t count towards their contributions caps or total super balance test in the year it’s made. However, it will count towards the transfer balance cap and be taken into account for determining eligibility for the age pension. SMSFs must ensure the member’s contribution has satisfied all relevant conditions and completed the downsizer contribution form before accepting a downsizing contribution.
To learn more please contact Andrews Accountants.