03 Jul What the super housing measures mean for SMSFs
What the super housing measures mean for SMSFs
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. This can be done by utilising theÂ First Home Super Saver Scheme.Â Members can also make a contribution into their super from the proceeds of the sale of their homes.
The First Home Super Saver Scheme:
The First Home Super Saver (FHSS) Scheme allows SMSF members to save faster for a first home. First home buyers can apply for concessional tax treatment available within super.
From 1 July 2018, SMSF members can apply to release certain voluntary concessional and non-concessional contributions made after 1 July 2017, along with associated earnings to help buy their first home.
Editor: There are various conditions that need to be met in order to take advantage of this measure â€“ contact our office if you would like to know more.
The downsizing measure:
SMSF members who are 65+ 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 wonâ€™t count towards their contributions caps or total super balance test in the year itâ€™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.
If you need any more advice about how to use your Superfunds in the purchase of your first home, get in touch here.Â
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the informationâ€™s applicability to their particular circumstances.
National Tax & Accountantsâ€™ Association Ltd.