Federal Budget / Investment Markets
On the evening of May 9, the eyes of the financial planning industry turned to Canberra as Treasurer Scott Morrison delivered his second Federal Budget. While it did not include the jaw-dropping changes of his first Budget, there was still plenty to interest financial planners and their clients.
First Home Super Saver Scheme Effective date – July 1, 2017
One of the more significant opportunities for clients was the announcement of the First Home Super Saver Scheme (FHSSS). Under this scheme, from July 1, 2017, first-home buyers will be able to make voluntary contributions to super and withdraw them, along with associated earnings, to purchase their first home.
Existing contribution caps will apply. In 2017/18, the concessional cap is $25,000 and the non-concessional cap is $100,000. That said, contributions able to be withdrawn under this scheme will be limited to $15,000 per year up to a maximum $30,000. The withdrawal amount will be less any contributions tax payable on concessional contributions.