Note: These changes are proposals only and may not be made law.
Date of effect: 1 July 2018
If you’re aged 65 or older, you’ll be able to make non-concessional (after tax) super contributions of up to $300,000, using proceeds from the sale of your family home.
This limit will:
Unlike other non-concessional contributions, it won’t be necessary for you to meet a work test or have a ‘total super balance’ under $1.6million. The amount you contribute won’t be exempt from the assets test used to assess eligibility for the Age Pension.
Date of effect: From 1 July 2017
If you’re a first home saver, you’ll be able to save for a deposit by making voluntary concessional and non-concessional super contributions. Contributions will be limited to $15,000 per year (up to a total of $30,000) and will count towards the relevant contribution cap.
You can make withdrawals from 1 July 2018. Concessional contributions plus assumed earnings you withdraw will be taxed at your marginal tax rate, less a 30% tax offset.
The Government has provided an online estimator to help you calculate the potential benefit of the scheme.
Date of effect: When law is passed.
Broadly, when new limited recourse borrowing arrangements are established, the loan balance will be included in your ‘total super balance’. The total super balance is used to determine your ability to:
Also, repayments made from the SMSF’s accumulation balance will count towards your transfer balance cap, if the borrowing supports a pension account. The transfer balance cap limits the total lifetime transfers you can make to retirement phase pensions.
For full Budget analysis, please see MLC’s 2017 Federal Budget Wrap Up.
This communication is an extract from the Federal Budget Analysis current as at 9 May 2017 and prepared by MLC Technical, part of GWM Adviser Services Limited ABN 96 002 071 749, AFSL 230692, a member of the National Australia Bank Group of Companies.
An investment with MLC is not a deposit or liability of, and is not guaranteed by NAB. Any advice in this communication is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice in this communication we recommend that you consider whether it is appropriate for your personal circumstances.