The Federal Governments budget announcement last night will provide valuable assistance and a win for first home buyers, investors and retirees. The following points are positive outcomes for these groups, without going into all the changes announced.
First Home Buyers
- A bold plan, administered by the ATO, to allow first home buyers to salary sacrifice up to $15,000 per year up to a total of $30,000 into their superannuation which they can then access to purchase their first home. Withdrawals will be allowed after 1 July 2018.
- This was certainly a hot topic of discussion leading into this years budget. But despite all the conjecture surrounding negative gearing, it remains relatively unchanged. In an effort to encourage affordable renting for those tenants on low or moderate incomes, the Government has moved to allow individual investors an extra 10% Capital Gains Tax discount from 1 January 2018 for landlords charging below market rent.
- Good news if you were thinking of downsizing your home in your latter years. The budget included an announcement that from 1 July 2018, those of us who are aged over 65 and have held their homes for over 10 years, can downsize and put up to $300,000 from the sale proceeds into superannuation. For a couple, that amount is up to $600,000.
Should you require any further details on these points or any others within the 2017 budget, please call Steve Sims on (08)6144 3230 or 0433 124081