Government introduces first home scheme laws

Legislation for the government’s First Home Super Saver Scheme (FHSSS), as well as its proposed new superannuation rules for retirees downsizing their homes, have been introduced to parliament.

       

 

The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1) Bill 2017 and the First Home Super Saver Tax Bill 2017 were introduced and read a first and second time by Assistant Minister to the Treasurer Michael Sukkar in the House of Representatives yesterday.

Commenting on the introduction of the laws, Treasurer Scott Morrison said the government was moving forward on the issue of housing affordability.

“The FHSSS legislation…will be a game changer for young Australians trying to get their first place,” Morrison said.

“For most people, the FHSSS will enable them to boost the savings they can put towards a deposit by 30 per cent compared with saving through a standard deposit account. This will give prospective home buyers a significant step up at a time when saving for a deposit is becoming increasingly difficult for many people.”

He added that he expected many older Australians to be attracted to take up the new downsizing rules in order to vacate larger properties which no longer suited their needs.

“[The rules] will encourage people who may have been put off by existing restrictions and caps [to superannuation] to move house and free up larger homes for growing families,” he said.

Proposed in this year’s budget, the FHSSS would allow first home buyers to contribute up to $30,000 to their super over and above compulsory contributions, which could then be withdrawn to purchase a home.

At the same time, retirees who wished to downsize could get relief from recently introduced restrictions to super contributions by accessing an additional $300,000 in non-concessional contributions if the funds came from the proceeds of their home sale.

 

By Sarah Kendell
08 Sep 2017
financialobserver.com.au

More Articles

Why crypto treads an uncertain path through tax minefield

The taxation of digital assets used for lending and borrowing would benefit from clear-sighted...

Read full article

Wheat Production by Country

Check out the countries that produce the most...

Read full article

Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’

Following years of mixed messaging, Labor has bowed to economic pressure and announced changes to its stage...

Read full article

Investment and economic outlook, January 2024

Region-by-region economic outlook and latest forecasts for investment returns. . What might shipping...

Read full article

Quarterly reporting regime means communication now paramount: expert

Communication between SMSF trustees, accountants and advisers is more crucial than ever with the quarterly...

Read full article

Four timeless principles for investing success

Investing success can mean different things to different people. Being clear on what success means for you is...

Read full article

Plan now to take advantage of 5-year carry forward rule: expert

This is the last year that the five-year catch-up contribution rules for concessional contributions can be...

Read full article

Super literacy low for cash-strapped

Financial literacy around superannuation is poor for many lower-income people, who still question why they...

Read full article

Sofie Korac is an Authorised Representative (No. 400164) of Prudentia Financial Planning Pty Ltd, AFSL 544118 and a member of the Association of Financial Advisers.

Financial Advice Sydney and the North Shore Office based in Gordon NSW

Financial Services Guide - Disclaimer & Privacy Policy

^