The federal budget, announced on Tuesday 9 May, contained some important changes for home owners.
Empty nesters are being offered an incentive to sell their home. The aim is to release larger properties to growing, younger families. From July 1, 2018, the government are enabling home owners over 65 to make a non-concessional superannuation contribution of up to $300,000 from the sale of their primary residence, – as long as they have lived there for 10 years or more.
First Home Buyer
First home buyers are being encouraged to use their superannuation to boost their savings. From July, first home buyers can salary sacrifice from pre-tax income up to $30,000. Withdrawals will be able to be made after July 1, 2018 and will profit from the tax benefits of superannuation.
Travel expenses related to owning or renting your investment property are no longer a tax deduction and negative gearing rules are being tightened.
Contact your financial advisor to see how you can benefit most from the changes.