On Point Tax

Superannuation, Holiday Rentals and Claiming Deductions

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Superannuation - Key rates and thresholds

The ATO has released the key superannuation rates and thresholds that apply to contributions and benefits, employment termination payments (ETP), super guarantee and co-contributions.

For the 2017-18 income year, the:

  • concessional contribution cap is $25,000
  • non-concessional contribution cap is $100,000 (conditions apply)
  • CGT cap amount is $1,445,000
  • Div 293 tax threshold amount is $250,000
  • low rate cap amount is $200,000
  • ETP cap for life benefit termination payments is $200,000
  • ETP cap for death benefit termination payments is $200,000.

Housing-related superannuation measures

The Government recently released draft legislation which will establish a First Home Super Saver Scheme, and allow a special “downsizing" contribution into superannuation.

The draft legislation for the First Home Super Saver Scheme would allow individuals to save for their first home inside superannuation. Under the scheme, first home savers who make voluntary contributions into the superannuation system would be able to withdraw those contributions, and an amount of associated earnings, for the purposes of purchasing their first homes. Concessional tax treatment would apply to amounts withdrawn under the scheme.

The draft legislation for the downsizing measure would allow individuals aged 65 years or over to make non-concessional contributions of up to $300,000 from the proceeds of selling their main residences to their superannuation accounts. Downsizer contributions will be able to be made regardless of the other contribution caps and restrictions that might apply to making voluntary contributions. This measure would apply to proceeds from contracts for the sale of a main residence entered into (exchanged) on or after 1 July 2018.

ATO warning on holiday rental properties

The ATO has issued a media release reminding taxpayers that it is paying close attention to rental properties located in popular holiday destinations around Australia.

Claiming deductions for your holiday home?

Make sure it is genuinely available for rent by answering these four questions:

  • How do you advertise your rental property?
  • What location and condition is your rental property in?
  • Do you have reasonable conditions for renting the property and charge market rate?
  • Do you accept interested tenants, unless you have a good reason not to?

Claiming work-related expenses?

The ATO is paying attention to people who are over-claiming work-related expenses. To get your deductions right, you need to satisfy the following rules: you must have spent the money and were not reimbursed; it must be directly related to earning your income, and not of a private nature; you must have a record to prove it.

Need more help?

Feel free to reach out to On Point Tax. Call us on 1300 518 040 or send us a message via the contact form.

Chartered Accountants Australia and New Zealand
The Tax Institute - Chartered Tax Adviser
Registered Tax Practitioners Board - Tax Agent 25996489

Our Managing Director Chris Dugan is a Fellow of Chartered Accountants Australia New Zealand, a Chartered Tax Adviser and a Fellow of the Tax Institute of Australia.

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