First Home Super Saver Scheme - Budget Initiative

Hunter80 on 14/05/2017 - 09:02

Hi,
First of I acknowledge that details on the scheme are scant, it's not passed through Senate yet, it is not best thought out scheme.. Some might disagree… But regardless of individual judgement on this initiative I am after some facts:
1. How will the Concessional Limit work?
- If someone continue to make salary sacrifice contributions to Super will they first consume the normal concessional contribution ($25,000) or the First Home Super Saver contribution ($15,000)?
2. Do they need to set up two separate salary sacrifice contributions? One for normal Super Concession and one for First Home Super Saver?
3. How are excess contributions treated? The normal excess Concessional contributions are quite defined in the way they will be treated and penalised? How will the First home Super saver be treated?
4. From 1 Jul 17 onwards, for people with super balances below $500,000 there is a provision of five year rolling over of the Concessional contributions?

  • If they make contributions of say $39,000 in 2017/18, will the Super Fund/ATO treat it as if they made $24,000 concessional contributions to Super and $15,000 to First Home Super Account? or
  • $25,000 contributions to Super and $14,000 to First Home Super Account?

I look forward to some details if known at this early stage.

Financial

Comments

  • chumlee on 14/05/2017 - 09:25

    I thought you have a second super account just for this first home thing. It doesn't go into your normal super account

  • Donaldhump on 14/05/2017 - 10:08
    +1

    Seems overly complicated and a waste of time imho. Why not just reduce the tax rate for fhb, or increase the tax free threshold for fhb.

    What's the rule if a woman is a fhb but her husband/de facto is not?

      • Donaldhump on 14/05/2017 - 11:33

        neg gearing i am fine with, but i think people abuse it when it comes to 'travelling to inspect a property'. you should have to fly in / fly out that day or a day later at most, instead of having a week vacation on the coast to see your property.

        cgt discount i think should/could be scrapped… have to do the same with shares etc i guess too.

        i think savings income should just be taxed at a maximum of 20% or something.

        wish i was a politician, seems the rules they make are mental.

        • cloudy on 14/05/2017 - 11:39

          And many will wish You are not a politician when ur in :p coz what u think I reasonable wont be viewed the same by many.

    • cloudy on 14/05/2017 - 11:37

      And how do u know if the person whom you give the lower tax rate is a first home buyer? In this scheme, if the person who is saving in their super doesn't buy a home, the money is locked up into super, so is the tax advantage. So unless u are a genuine home buyer, it's unlikely to be something u will pursue.

  • MansorT on 15/05/2017 - 09:37

    Actually, I found a piece with good info,

    It seems like a FHB could potentially be about $5K better off as a result of this scheme. But the more income you earn the less the benefits.

    https://loandolphin.com.au/blog/2017/05/first-home-super-sav…

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