How the government’s new property plan works

Jarrod Sierocki

A loophole enjoyed by Australian property owners to the tune of half a billion dollars has been closed in the 2017 federal budget

FIRST home buyers will finally be able to dip into their superannuation to pay for a deposit under the federal government’s wide-ranging housing affordability package.

Renters, people waiting for subsidised housing and the homeless get a boost in the 2017 Budget, while property investors face tougher rules around negative gearing and capital gains tax and older Australians are being encouraged to downsize.

Under the widely anticipated superannuation scheme for first home buyers, existing super balances will remain locked away.

From July 1, savers will be able to salary sacrifice extra contributions into their superannuation account above the compulsory contribution, up to a maximum of $30,000 in total and $15,000 in a single year.

They will then be able to withdraw that cash from July 1, 2018 onwards, along with any associated earnings.

“Under this plan, m…

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