Banking

First home super saver scheme

Image result for First home super saver scheme

On 9 May 2017, the Government announced that from 1 July 2018 individuals will be able to apply to withdraw voluntary contributions made to super after 1 July 2017 for a first home deposit.

Voluntary contributions include:

   Undeducted (non-concessional) personal contributions

  Deducted (concessional) personal contributions

–  Salary sacrifice contributions.

Up to $15,000 of voluntary contributions made in a financial year count towards the amount that can be released.  The maximum amount that can be released is $30,000 of personal contributions plus an associated deemed earnings amount.  Concessional contributions and earnings that are withdrawn will be taxed at marginal rates less a 30 per cent offset.

First home buyers: Stamp duty cuts for houses worth up to $800,000

FIRST home buyers in NSW will no longer have to pay stamp duty on both new and existing homes worth up to $650,000, with discounts also applying to properties worth up to $800,000. A great outcome for first home buyers.

Image result for first home buyers

The NSW Government has announced a comprehensive package of measures to support first homebuyers by providing stamp duty exemptions, boosting housing supply and delivering infrastructure to support growing communities across the State. the measures include:

 

–   Abolish stamp duty on all homes up to $650,000

 

–   Provide a $10,000 grant for builders of new homes up to $750,000 and purchasers of new homes up to $600,000

 

–  Abolishing the stamp duty charged on lenders’ mortgage insurance, which is often required by banks to lend to first homebuyers with limited deposits, providing a saving of around $2,900 on an $800,000 property

 

–   Doubling the foreign investor surcharge from 4% to 8% on stamp duty and 0.75% to 2% on land tax

 

–   Removing stamp duty concessions for investors purchasing off the plan

 

–   Committing $3bn in infrastructure funding from Government, councils and developers to accelerate the delivery of new housing

 

–   Fast-track approvals for well-designed terraces, townhouses, manor homes and dual occupancy by expanding complying development to include these dwelling types

 

–   Measures to maintain the local character of communities

 

stampduty

*Total of stamp duty exemptions plus first home owners grant plus savings from LMI duty abolition (Genworth LMI Premium Estimator based on a first home buyer with a $50,000 deposit).**Does not include additional land tax surcharge.

 

RBA outlook

In Australia, the minutes from the RBA’s last Board meeting confirmed that the door is wide open for another rate cut at its August 2 meeting. While not as direct as the Reserve Bank of New Zealand, the RBA indicated that it was waiting on further information on inflation, the labour market and the housing market and the next update of the RBA’s economic forecasts. Since it has described the labour market and the housing market as “mixed” and recent data on both suggest no reason to change that assessment, the implication from the RBA is that should we see another low inflation reading when the June quarter CPI numbers are released on Wednesday then it’s likely that the RBA will cut the cash rate from 1.75% to 1.5% on August 2. A CPI outcome of 0.4% quarter on quarter for headline and underlying – which is what we expect – would likely be enough to see the RBA cut again.