What the super housing measures mean for SMSFs
If you are a member of a self-managed super fund (SMSF), don't forget that starting 1 July 2018 there are new housing measures you may be able to take advantage of. Here are the details in a nutshell:
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.
Note: There are various conditions that need to be met in order to take advantage of this measure. Please contact our office if you would like to know more.
The Downsizing Measure
SMSF members who are 65 years of age 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 will not count towards contributions caps or the total super balance test in the year it’s made. It will, however, count towards the transfer balance cap and be taken into account for determining eligibility for the age pension.
Note: 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 are considering taking advantage of either scheme, or would like to know how they would work within your financial plan, please contact our office - we would be happy to work this through with you.