Super savings schemes for staff
You may have heard about two new Government initiatives allowing Aussies to save for their first home, or contribute to their super from the sale of their home. In this article, we give you the low down on the First Home Super Saver (FHSS) Scheme and the Downsizing Contributions measure, to help you understand how it may impact you and your staff.
What are the initiatives?
In the 2017 – 18 Federal Budget, the Government introduced the following two initiatives to help Aussies make extra savings inside their super account.
1. The First Home Super Saver (FHSS) Scheme allows young Aussies to save for their first home inside their super account. They can make voluntary contributions into their super account, taking advantage of the tax treatment, then withdraw their savings to purchase their first home.
2. The Downsizing Contributions measure allows those aged 65 years or older to contribute up to $300,000 from the sale of their home into their super account.
When do they start?
The FHSS Scheme started on 1 July 2017. Staff can now make voluntary contributions into their super account, and those taking advantage of the scheme will be able to withdraw their savings from 1 July 2018.
The Downsizing Contributions measure will start on 1 July 2018. Those who are eligible will be able to contribute into their super account from this date onwards.
How does this affect me as an employer?
If your employees choose to take advantage of either of these initiatives, there is nothing you need to do, other than process their extra contributions.
If you do receive questions from your staff, they can call us on 1300 131 293 if they’d like to discuss their options. Alternatively, you can direct them to the Australian Taxation Office’s (ATO) website where they can find more information on each initiative.
What does this mean for my staff?
If any of your staff are interested, they need to be aware each initiative has eligibility requirements. They can visit the ATO’s website for more information.
If they are eligible, all they need to do is make voluntary contributions into their super account.
Find out more
Your local Regional Manager is available to help you understand your super obligations as an employer. Give them a call today or organise a time for them to come visit you at your workplace.
Source: Australian Taxation Office. First Home Super Saver Scheme. www.ato.gov.au/fhss.
Source: Australian Taxation Office. Downsizing contributions into superannuation. www.ato.gov.au/downsizing
This editorial is general information only and does not take into account your individual objectives, financial situation or needs. You may also wish to seek the advice of a qualified financial planner. Please also read the relevant AustSafe Super Product Disclosure Statement (PDS) before making a decision in relation to the product available at austsafe.com.au which summarises important information about being a member of AustSafe Super.
Austsafe Pty Ltd ABN 96 010 528 597, AFSL 314183 is the Trustee of AustSafe Super ABN 92 398 191 503