Important tax return inclusions flagged for downsizer, super schemes
The ATO has reminded those who used either the downsizer or First Home Super Saver Scheme on what they need to include in their 2019 tax return.
In an online update, the ATO said the 2018–19 year was the first financial year that members were able to make downsizer contributions to their superannuation fund.
“From 1 July 2018, members aged 65 years old or older, and met all the eligibility requirements, could choose to make a downsizer contribution of up to $300,000 into superannuation from the proceeds of selling their primary residence. To be eligible, the contract for sale must be entered into on or after 1 July 2018,” it explained.
“Downsizer contributions should be made within 90 days of the change of ownership of the dwelling, usually the date of settlement. An extension of time may be granted where there is a delay, but will not be granted to allow the member to meet the age requirement.”
The ATO said if a member makes a downsizer contribution, it needs to be reported in the year it is made.
“The member will need to provide a downsizer contribution into super form, either before or when they make their contribution,” it said.
If a taxpayer requested the release of an amount under the First Home Super Saver Scheme (FHSS) during the 2018–19 financial year, then they need to include any assessable FHSS amount and the tax withheld amount in their tax return.
“They will receive a payment summary from us showing the assessable FHSS amount and tax withheld,” it said.
“If they requested a release during the 2018–19 income year, they must include the amount in their 2019 tax return, even if they did not receive the amount until after 30 June 2019.”
