How will these Super changes affect you?
August 30th, 2017 • No comments
Did you hear about the recent policy changes that could affect your retirement (no matter how far that is away!)?
From new Stamp Duty policies to new superannuation policies, these could mean changes to your current and future property investment decisions.
We want to make sure you know what these changes, the opportunities created as well as avoiding the risks involved.
Here are the facts:
Retirees are now given incentives to downsize
Australians aged over 65 who sell their home which they have owned for over a decade will be able to put up to $300,000 in sale proceeds into their superannuation.
This incentive to downsize will help free up larger homes for families to move into and offer the sea change lifestyle they might be looking for.
Investors won’t be able to claim travel deductions
Investors who previously has travel expense tax deductions related to their investment property will no longer be able to make these claims, even if travelling to collect rent, maintain or inspect a premises, they will not be allowed as tax deductions.
New Superannuation “transition to retirement” rules have been implemented and there is no longer a compulsory retirement age. Access to your super depends of your super preservation age between 55 and 60 and the age pension age has been increased from 65 to 67.
There are also new contribution caps introduced such as the concessional Contribution Cap is universal $25,000 for all. Non-concessional contribution cap is now $100,000pm (was $180,000pa) as well as the Introduction of Balance transfer Cap at $1.6million per person
New Home Buyers Super Saver
The new super saver scheme will allow first-time home buyers to put up to $15,000 a year, to a maximum of $30,000 into their superannuation.
These funds can later be withdrawn for a home deposit, including any earnings the deposits have made.
This means a tax incentive to save more, and can be taken advantage of as a couple with each claiming $30,000.
For more information of changes please visit your local government’s website.
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