| 2023-24 | 2024-25 | ||
|---|---|---|---|
| Thresholds ($) | Rates (%) | Thresholds ($) | Rates (%) |
| 0 - 18,200 | Tax free | 0 - 18,200 | Tax free |
| 18,201 - 45,000 | 19 | 18,201 - 45,000 | 16 |
| 45,001 - 120,000 | 32.5 | 45,001 - 135,000 | 30 |
| 120,001 - 180,000 | 37 | 135,001 - 190,000 | 37 |
| Over 180,000 | 45 | Over 190,000 | 45 |
As of 1 January 2023, people aged 55 and older who sell their homes (and meet the requirements) can make a ‘downsizer’ contribution to their superannuation fund of up to $300,000 (or $600,000 per couple) from the proceeds of the sale. This is a tax-free contribution that can be made in addition to any concessional or non-concessional contributions.
If you would like to chat about this as an option moving towards retirement, please give us a call.
The ATO has adopted a new compliance approach with regards to the ‘Section 100A’ rule that can apply when a beneficiary’s distribution arises from a reimbursement agreement. Section 100A is in place essentially to stop arrangements whereby a distribution is made to one beneficiary (likely on a low tax rate) but the economic benefit is transferred or paid to a second beneficiary (on a higher tax rate).
If you have any questions in relation to Trusts & tax implications give us a call to discuss.
