I am delighted to announce that Nick Smith, who was previously engaged by the Fund on a short term basis, has taken on the role of Executive Manager – Finance and Tax on a permanent capacity from 21 February 2018.
As a Chartered Accountant, Nick brings over 20 years financial experience to the team, having worked in Government and private sector roles, including a period at Airservices Australia. Nick has worked with the Australian Government’s defined benefit superannuation funds, including management of the Parliamentary Contributory Superannuation Scheme (PCSS) and the financial management of the Civilian and Defence unfunded liabilities. Most recently, he was a commercial manager on the Future Frigate program at Defence.
If you have any questions about Nick’s new role, or any other matter about AvSuper or superannuation, please contact your AvSuper team on 1300 128 751 or AvChat (see link above).
Chief Executive Officer
On 13 December 2017, the Government’s downsizing proposal was passed as law meaning that older Australians may be able to boost their retirement savings if they sell the family home.
The downsizing measure
From 1 July 2018, if you are over 65 years, you may be able to contribute up to $300,000 from the sale of your primary home to your super or income stream account.
Called a downsizer contribution, this money is not counted towards your contribution limits nor affected by the total super balance test that financial year.
However, it will count towards your total super balance and total income stream transfer balance cap. The amount is included with any super balances for age pension calculations and is not tax deductible.
There is no requirement to by a smaller home, or any home for that matter, for this measure to apply, and it applies to an individual so a couple may be entitled to contribute $600,000 in total.
Eligibility is strictly set and there are timeframes for making the contributions. Amongst other criteria, money must come from the proceeds of your primary home (not a caravan or houseboat) that you and/or your spouse have owned for at least 10 years. The maximum you can contribute is the proceeds of a single sale, even if that amount is less than the $300,000 limit.
Please contact our Member Advice Team if you are considering selling your home so we can discuss if the downsizing measure suits your circumstances.
Part of the 2017 Federal Budget was to enable first home buyers to use some superannuation savings towards purchasing a house. This proposal was legislated on 13 December 2017 so is now law.
What is the FHSS scheme?
From 1 July 2018, first home buyers will be able withdraw up to $30,000 voluntary super contributions (made since 1 July 2017) and their deemed earnings to use towards a house deposit. This makes saving more tax effective and potentially attracts a higher rate of interest.
How can I access the FHSS?
If eligible to withdraw money under FHSS, you need to complete an ATO application after 1 July 2018.
Once the withdrawal is made, you have twelve months to sign a contract to purchase or construct a home. Otherwise, a tax penalty will apply.
What do I do now?
If you are looking to buy or build your first home, read our fact sheet to learn more about the FHSS scheme. Assuming you meet the eligibility terms, you can then make additional contributions to your super in the usual way to put towards a house deposit after July 2018.
Of course, AvSuper Member Advice Consultants are happy to discuss this scheme with you and assist you in making the additional contributions.
AvSuper wishes all members and employers a very Merry Christmas and a safe and prosperous 2018.
While we will be closing the office over the holiday period, you can leave messages via AvChat, voicemail or email. We will monitor messages and reply to them all when the office reopens in January.
The office will be closed between 10.30 am Thursday 21 December 2017 and 9.00 am Thursday 4 January.