New Rules
From 1 July 2018, if you are 65 or over, and you are downsizing, the Government has created a new tax break for you.
You will be able to make a contribution to super of up to $300,000 from the proceeds of selling your home. This contribution would be paid into your accumulation account, from which you could transfer it into your pension account.
This contribution will not count towards the concessional or non-concessional contribution caps. The existing maximum age for contributions to super will not apply. The work test for over 65s will not apply. If you have already transferred $1.6 million into your pension account previously, you can put up to an additional $300,000 in.
The home you’re selling must have been owned by the individual for the past ten or more years and have been your principal residence.
Both members of a couple can contribute to super under this policy, so $600,000 all up.
The devil is in the detail. To benefit you need to make sure that that additional $300,000 in super will actually reduce your tax liability.
