Federal Budget 2017 FAQs

How can I estimate the additional amount I can save for my first home deposit inside superannuation?

You can use the Government online estimator at budget.gov.au/estimator.

Can non concessional (after-tax) contributions be made under the proposed scheme to save for a deposit for your first home inside superannuation?

Yes, however these may not be as tax effective as concessional (pre-tax) contributions. You should also note that the normal non-concessional cap also applies.

What is the process for withdrawing my first home deposit from my superannuation?

The Australian Taxation Office (ATO) will administer this scheme as well as determining eligibility. Rest will respond to a release request authorised by the ATO.

Will a release from superannuation for a deposit on a first home trigger a reduction in my social security entitlements?

No. Whilst the concessional part of a release amount will be included in your taxable income it will not flow through to other income tests used for other purposes, such as for calculation of HECS/HELP repayments, family tax benefit or child care benefit.

Does this proposed measure mean I can withdraw from my superannuation to pay for my first home now?

No. From 1 July 2017 you can make voluntary contributions up to $15,000 per year and up to $30,000 in total. You can apply to the ATO to make a withdrawal from 1 July 2018.

Will the proceeds of the sale of a home into superannuation count toward the Age Pension assets test?

Yes. Any change in your superannuation balance as a result of this measure will count towards the Age Pension assets test.

Will contributions to superannuation as a result of the sale of a home be exempt from the transfer balance cap?

No. The Government's new balance transfer cap, which is being introduced on 1 July 2017, means those with remaining space can transfer the contribution into a retirement phase pension where earnings are tax-free.

I have $1.6 million in my superannuation account and wish to contribute the proceeds from the sale of my home as a non-concessional contribution into superannuation. Will the total superannuation balance cap of $1.6 million apply?

No. Restrictions on non-concessional contributions for people with total superannuation balances (including super and pension) above $1.6 million will not apply to contributions made under this proposed measure.

I have already lodged a complaint with the Superannuation Complaints Tribunal. Will these changes impact me?

The establishment of the Australian Financial Complaints Authority will not impact current complaints. However, from 1 November 2018 the SCT will only handle existing cases.

What is the work test?

The work test applies to people aged 65 to 74 who want to contribute to their super. This means you have to work for at least 40 hours in a period of not more than 30 consecutive days in that financial year before you can make a contribution.