Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)
General outline and financial impact
First Home Super Saver Scheme
Schedule 1 to the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No.1) Bill 2017 ('the Bill') establishes the First Home Super Saver Scheme, which allows individuals who are saving for their first home to take advantage of the concessional taxation arrangements that apply to the superannuation system.
Under the First Home Super Saver Scheme, first home savers who make voluntary contributions into the superannuation system can withdraw those contributions (up to certain limits) and an amount of associated earnings for the purposes of purchasing their first home. Concessional tax treatment applies to amounts that are withdrawn under the Scheme.
Date of effect: The First Home Super Saver Scheme applies to voluntary contributions that are made into superannuation on or after 1 July 2017. Such contributions can be withdrawn under the Scheme from 1 July 2018.
Proposal announced: These amendments implement the 'Reducing Pressure on Housing Affordability - first home super saver scheme' measure that was announced in the 2017-18 Budget.
Human rights implications: This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights -paragraphs 1.228 to 1.232.
Contributing the proceeds of downsizing to superannuation
Schedule 2 to the Bill allows an individual to use the proceeds in relation to one sale of their main residence to make contributions (downsizer contributions) of up to $300,000 to their superannuation provider if they are 65 years of age or over. Downsizer contributions can be made regardless of the other contributions caps and restrictions that might apply to making voluntary contributions.
Date of effect: The amendments apply to proceeds from contracts for the sale of a main residence entered into (exchanged) on or after 1 July 2018.
Proposal announced: The amendments implement the 'Reducing Pressure on Housing Affordability - contributing the proceeds of downsizing to superannuation' measure that was announced in the 2017-18 Budget.
.. Not zero, but rounded to zero.
Human rights implications: This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights -paragraphs 2.92 to 2.95.