With the median house prices in our leading cities exceeding 800k, is the Australian government’s new 30k superannuation contributions cap high enough? I think not.
What may be a great idea, has a fatal flaw. It just isn’t enough. Contributions will be allowed from July 1 and will be taxed at 15 per cent. Withdrawals, allowed from July, 2018, will be taxed at marginal tax rates minus a 30 per cent offset. Also, couples will be able to combine their savings for a single deposit.
Realistically, this type of change is likely to push demand for properties such as units and townhouses but it’s not going to help with houses unless buyers go to the fringe or regional areas.
Looking to know more about the new super changes? Take a look at the full story here.