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  • CRT Alert 049/2018

    24 May 2018

    Housing affordability measures update

    Draft law companion rulings released

    We have released the following draft law companion rulings (LCR) for consultation:

    • LCR 2018/D5 First Home Super Saver Scheme
    • LCR 2018/D4 Housing affordability measures: contributing the proceeds of downsizing to superannuation.

    Next steps:

    Frequently Asked Questions released

    Following a range of consultations with industry, we have also released Frequently Asked Questions on the Let's Talk Super Community that will assist superannuation funds in their implementation and administration of the First Home Super Saver Scheme and Downsizing contributions into superannuation measure.

    Next step:

    Downsizing into Super

    On 1 July 2018, the Downsizing measure will come into effect allowing individuals who are 65 years and over to contribute up to $300,000 into their superannuation after selling their main residence.

    With the start date fast approaching it's important to remember that any contracts your members sign before 1 July will not be eligible.

    Reporting update

    Large super funds can report downsizing contributions to the ATO via MATS or using the ATO Online Portal.

    We'll publish web content with clear instructions for how to report using the portal once this option is available.

    MATS reporting

    A new MATS reporting transaction type will be available from 1 July 2018. If you have the new transaction type 'proceeds from primary residence disposal' built into your registry systems you'll be able to report downsizing contributions directly to us once you've on boarded.

    We're working with industry to develop an alternative reporting solution for funds that have decided not to build this new contribution transaction type into their registry systems.

    We'll also add a new label to the self-managed super fund annual return to allow trustees to report downsizing contributions made in the 2018–19 year.

    ATO Online Portal update

    The ATO Online Portal, an alternative solution for large super funds to report downsizing contributions, won't be available by 1 July 2018 but is expected to be ready by December 2018.

    If you plan to use the ATO Online Portal for reporting you will need to hold or stockpile any downsizing contributions until the portal becomes available.

    Once it's available, you can use the portal to cancel or amend the original MATS reporting.

    You may also choose to align your use of the ATO Online Portal with your MATS cutover or on boarding timeframe.

    How will the ATO Online Portal reporting process work

    If you use the ATO Online Portal reporting process you would generally:

    • accept a downsizing contribution and record it as a personal contribution in the registry system when allocating it to the member's account
    • report the personal contribution within 10 days of receipt through MATS
    • log onto the ATO Business Portal using AUSkey authorisation
    • cancel or amend the personal transaction and re-report the amount at the 'proceeds from primary residence disposal' label.

    See also:

      Last modified: 24 May 2018QC 55675