The Australian Federal Budget 2017: Getting into property and getting out of property, things from left field & investment in infrastructure.
Wow, has this budget got a deal for you!
You always want what you haven’t got. When you’re young you are thinking about schemes to get your access to your super money to buy a house and when you’re old you’re looking for ways to get it back into super. Trust us, we have dealt with clients at both ends of that spectrum.
We all know these new budget measures will do nothing for actual house price affordability in Melbourne and Sydney! That will be left to the dual devices of eventual oversupply and interest rates that will rise (one day). But it is an interesting feature of the budget nonetheless.
So, how does it work. Let’s focus on the first home buyers.
First Home Buyers
Our early read on the proposal looks like this:
From 1 July 2017,
Scott Morrison has delivered his second Budget, aimed at boosting growth and the government’s flagging poll rating, declaring there are “better days ahead”. Here is a a quick recap of some of the key announcements that affect the individual.
To find out more, read our “Government delivers stability in 2017-18 Federal Budget” post or contact the team here at Superfund Partners.
Following the budget, The Association of Superannuation Funds of Australia (ASFA) has said while not as substantial as the landmark reforms in last year’s Budget, this year’s package of superannuation-related measures announced by the government will nonetheless have a wide-ranging impact.
ASFA CEO Dr Martin Fahy said ASFA has advocated for the extension of capital gains tax (CGT) rollover relief announced in tonight’s Budget, because it should help support super fund mergers.
The government will extend current tax relief for merging super funds until 1 July 2020.
“Mergers of funds are one means by which they can realise scale efficiencies, so removing this significant barrier is welcome in a competitive superannuation industry that is continuously improving its efficiency and productivity,” he said.
Dr Fahy said a new dispute resolution framework would include an Australian Financial Complaints Authority (AFCA) dealing with all financial disputes including super disputes.
“We will be seeking to have active input into any transition arrangements to ensure consumer protections are preserved and existing Superannuation Complaints Tribunal (SCT) cases are efficiently and equitably dealt with,” he said.
The lease at 195 Vulture Street South Brisbane has expired and due to the uncertainty around redevelopment plans for this office, we have decided to relocate to Eight Mile Plains.
The very modern Eight Mile Plains office has recently undergone renovations to allow for this relocation and is only a short drive from our previous South Brisbane location. There is also ample visitor parking at the front door of the building.
An added bonus is that clients will find our new office easier to navigate to and it is right near the highway.
We look forward to welcoming you to our new office in the very near future.
Here is the address for the Eight Mile Plains office
Building 22 Garden City Office Park 2404 Logan Rd, Eight Mile Plains QLD 4113
Stability and confidence for superannuation is the good news coming out of the 2017-18 Federal Budget. With SMSF members still working through the wide-reaching and complex superannuation changes of the last Budget which take effect from 1 July 2017, this Budget’s minimal changes will result in a period for members to ensure they have the correct strategies in place.
The main change impacting superannuation involves allowing people aged 65 and over to downsize their home and gain exemptions to superannuation caps, a First Home Super Saver Scheme and the rounding up of minor technical changes already announced.
The key changes proposed for superannuation are:
Downsizing exemption to superannuation caps
From 1 July 2018, individuals aged 65 and over will be able to downsize their family home and place proceeds up to $300,000 per member into their superannuation fund without breaching any of the current superannuation caps, work test and age test. The measure will apply to a principal place of residence held for a minimum of 10 years.