Here is some good news for both aspiring and established homed owners…
Parliament has recently passed legislation which will allow first home buyers to save for a deposit inside superannuation through the First Home Super Saver Scheme (FHSSS), and which will also allow older Australians to ‘downsize’ and then contribute the proceeds of the sale of their family home into superannuation.
From 1 July 2018, here is how it will work:
- A first home buyer will be able to withdraw voluntary superannuation contributions they have made since 1 July 2017 (up to $30,000 each, with individuals being able to contribute up to $15,000 a year within existing caps), along with a deemed rate of earnings, to help buy their home; and
- When Australians aged 65 and over sell a home they have owned for at least 10 years, 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.
Want to know how these changes may benefit your financial plan? Get in touch with us and we will work it through with you.
[Originally posted on the OakWealth Blog]