From 1 July 2017, the Government will introduce a “First Home Super Saver Scheme”. The Scheme is designed to enable people to make voluntary contributions to their superannuation account (which will be taxed at a rate of 15%). Subject to a number of conditions, those contributions may be withdrawn for payment of a deposit on a first home purchase.
No doubt this will encourage many employees to “salary sacrifice” their earnings to increase their chances of owning their own home.
The Scheme is expected to be administered by the Australian Taxation Office who will be responsible for determining:
1. the amounts to be released and reporting those amounts to the applicable superannuation fund;
2. the eligibility of applicants wanting to benefit under the Scheme by withdrawing from their superannuation fund; and
3. the nature of the compliance mechanisms that will be established to ensure that applicants under the Scheme purchase their first home after the funds are released from their superannuation funds.
There is a limit to how much one can voluntarily deposit, and the combination of both voluntary contributions and compulsory employer contributions must not exceed $25,000.00 for the 2017- 2018 financial year. People will be able to make withdrawals from their superannuation account in respect of the Scheme from 1 July 2018. The withdrawals will be taxed at the applicable marginal tax rate, less a 30% offset.
We think a lot of first home buyers will take advantage of this Scheme- so make sure you get across all the details and diarise 1 July 2018!
The information provided is general in nature and is not legal advice. Please seek specific legal advice from our office in relation to your particular circumstances.
If you or someone you know requires any further information in relation to these matter, please contact our team on 9653 9466 or email [email protected] to discuss.
Shared Equity Scheme
Have you heard about the Shared Equity Scheme?
From 1 July 2017 home buyers who are unable to afford their home on their own are able to purchase a property with the help of an Approved Equity Partner. Guidelines are being developed to assist in the operation of the Scheme.
Approved Equity Partners
• NSW Land and Housing Corporation
• A registered community housing provider within the meaning of the Community Housing Providers (Adoption of National Law) Act 2012
• Approved persons (Guidelines will be produced)
The information provided is general in nature and is not legal advice. Please seek specific legal advice from our office in relation to your particular circumstances.
If you or someone you know requires any further information in relation to these matter, please contact our team on 9653 9466 or email [email protected] to discuss.
