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Wednesday, 10 May 2017

Downsizing superannuation concession

The Government will encourage older Australians to free up housing stock by enabling downsizers over the age of 65 to make a non-concessional contribution of up to $300,000 into their superannuation fund from the proceeds of the sale of their principal home.

The Budget said “Mum and dad investors will continue to be able to use negative gearing, supporting the supply of rental housing and placing downward pressure on rents.

“Regulatory agencies will continue to use their flexible and calibrated controls.”

Mr Morrison said the Government will legislate to extend APRA’s ability to apply controls to the non-ADI sector and explicitly allow them to differentiate the application of loan controls by location.

Tougher rules on foreign investment in residential real estate will be introduced, removing the main residence capital gains tax exemption, and tightening compliance.

There will be an annual foreign investment levy of at least $5,000 on all future foreign investors who fail to either occupy or lease their property for at least six months each year.


Extending tax relief for merging superannuation funds

The Government will extend the current tax relief for merging superannuation funds until 1 July 2020. This measure is estimated to have an unquantifiable cost to revenue over the forard estimates period.


Non-arm’s length arrangements

From 1 July 2018, the Government will reduce opportunities for superannuation fund members to use related party transactions on non-commercial terms to increase superannuation savings.

The non-arm’s length income provisions will be amended to ensure expenses that would normally apply in a commercial transaction are included when considering whether the transaction is on a commercial basis.

This measure is estimated to increase tax revenue by $20.0 million over the forward estimates.


Click below to view source

Budget Paper No 1, Statement No 1 – Budget Overview

Budget Paper No 2, Part 1 Revenue Measures – Treasury page 21, page 34

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