Access to Super for First Home Deposits – Individuals will be able to make voluntary contributions to superannuation of up to $15,000 per year and $30,000 in total, to be withdrawn subsequently for a first home deposit. The contributions can be made from 1 July 2017 and must be made within an individual’s existing contribution caps. From 1 July 2018, an individual will be able to withdraw these contributions and their associated deemed earnings for a first home deposit. The withdrawals will be taxed at an individual’s marginal tax rate, less a 30% tax offset. Couples saving for a first-home deposit can access this measure and double the benefit.
Super Contributions from Downsizing – Individuals aged 65 or over can contribute up to $300,000 from the proceeds of the sale of their home as a non-concessional contribution into superannuation, from 1 July 2018.
Travel Deductions Limited – Deductions for travel expenses related to inspecting, maintaining or collecting rent for a residential rental property will be disallowed from 1 July 2017.
Plant and Equipment Deductions Limited – Plant and equipment depreciation deductions will be limited to outlays actually incurred by investors in residential real estate properties from 1 July 2017.
CGT Discount Increased – Subject to various conditions, the Capital Gains Tax discount for Australian resident individuals investing in qualifying affordable housing will be increased from 50% to 60% from 1 January 2018.
Negative Gearing – Despite pre-Budget speculation, the negative gearing rules remain unchanged.
** Information provided by: Australian Taxation Reporter **
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