Blog Layout

Super Contributions of up to $300K from Downsizing a Home
Liz Gibbs • September 7, 2017

 

The  Government introduced  Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No 1) Bill 2017   in the House of Reps Thur 7.9.2017. The Bill proposes to allow people aged 65 or over to make   additional non-concessional contributions up to $300,000 from the proceeds of selling their home from 1 July 2018.

The measure will apply to sales of a principal residence (excluding a caravan, houseboat or mobile home) that would qualify for a partial or full CGT concession. Either the individual or their spouse must have owned the home for a minimum of 10 years up to the point of sale. If the person's spouse is not on the title with them, both can still make a downsizer contribution. Note that a person is not required to make any subsequent purchase of another dwelling after selling their home and making a downsizer contribution. The measure seeks to reduce a barrier to downsizing for older people to enable more effective use of the housing stock by freeing up larger homes. 

This downsizer contributions cap of $300,000 will be excluded from the non-concessional contributions cap. It will also be exempt from the contribution rules for people aged 65 and older, and the restrictions on non-concessional contributions for people with total superannuation balances above $1.6 million. The contribution (non-deductible) must be made within 90 days after the home changes ownership (generally the date of settlement). While the family home is totally exempt from the Age Pension assets test, any   sale proceeds from downsizing that are contributed to superannuation will count toward the assets test.

DATE OF EFFECT: Only applies to home sales where the contract of sale is entered into (exchanged) on or after 1 July 2018.

If you have any questions about how the proposed Downsizing measures applies to you, please don't hesitate to contact Robert Goodman Accountants on 07 3289 1700.
Office open
By Liz Gibbs March 10, 2025
With thanks to all Energex and Emergency services Crew, our electricity has been reconnected and our office is open from today 11 March. We hope you and your loved ones are safe and well following cyclone Alfred. These past few days have been challenging for many, and our thoughts are with everyone affected.
By Liz Gibbs March 10, 2025
Due to a power outage affecting the entire Samford area, the RGA Practice will be operating remotely today, 10 March, until electricity is restored. Please be assured that our team remains available and can be reached at 07 3289 1700. We appreciate your understanding and support during this time. Stay safe, and we look forward to seeing you soon.
Cyclone Alfred
By Liz Gibbs March 5, 2025
As Tropical Cyclone Alfred approaches, we want to remind everyone to take necessary precautions and ensure their safety. We have received some important information that we believe is crucial to share with you to help you prepare for the severe weather conditions ahead.
Work Health and Safety (Sexual Harassment) Amendment Regulation 2024
By Liz Gibbs February 26, 2025
In a significant move to combat workplace sexual harassment, Amendments to the Work Health and Safety Regulation 2011 (as per the Work Health and Safety (Sexual Harassment) Amendment Regulation 2024) will soon commence on 1 March 2025.
By Liz Gibbs February 25, 2025
The amount of money that can be transferred to a tax-free retirement account will increase to $2m on 1 July 2025.
What happens to your super when you die?
By Liz Gibbs February 25, 2025
The Government has announced its intention to introduce mandatory standards for large superannuation funds to, amongst other things, deliver timely and compassionate handling of death benefits. Do we have a problem with paying out super when a member dies?
By Liz Gibbs February 25, 2025
If credit card surcharges are banned in other countries, why not Australia? We look at the surcharge debate and the payment system complexity that has brought us to this point. In the United Kingdom, consumer credit and debit card surcharges have been banned since 2018. In Europe, all except American Express and Diners Club consumer surcharges are banned. And in Australia, there is a push to follow suit. But, is the issue as simple as it seems?
Babyboomer wealth
By Liz Gibbs February 25, 2025
“Succession planning, and the tax risks associated with it, is our number one focus in 2025. In recent years we’ve observed an increase in reorganisations that appear to be connected to succession planning.” ATO Private Wealth Deputy Commissioner Louise Clarke.
Penalty for False R&D claims
By Liz Gibbs February 25, 2025
A joint investigation involving the ATO found that, between 2014 and 2017, a Sydney business coach promoted unlawful tax schemes encouraging clients to lodge over-inflated, inaccurate or unsubstantiated research and development ('R&D') tax incentive claims
SMSF lodgement due dates
By Liz Gibbs February 25, 2025
All trustees of SMSFs with assets (including super contributions or any other investments) as at 30 June 2024 need to lodge an SMSF annual return ('SAR') for the 2023/24 financial year.
More Posts
Share by: