NAB director of SMSF and investor behaviour, Gemma Dale said Australians who are looking to buy their first home or are preparing for retirement “could be in for a windfall in 2018, with a number of key superannuation changes expected to come into effect”.
One of the big changes this year is the downsizer contribution, she said, which allows individuals aged 65 years and above to make non-concessional contributions of up to $300,000 per person to their super from the proceeds of selling their main residences.
“It is important to note that these contributions only apply to contracts of sale entered into from 1 July 2018, and the property also needs to be owned for at least 10 years before disposal,” she noted.
She also said that from 1 July, individuals with super balances of less than $500,000 on 30 June of the prior financial year will be able to access a higher annual cap and contribute their remaining unused concessional contribution cap on a rolling basis for a period of five years.
“Only unused amounts accrued from 1 July 2018 can be carried forward [though],” she said.
“This measure will enable customers who take time out of work or work part-time to make catch-up contributions when they accumulate lumpy income or decide to work full-time.”
She also reminded members that they will be able to withdraw any contributions and their associated earnings made under the First Home Super Saver Scheme from 1 July this year for the purchase of a first home.