Author: Stephen Mason (this article appeared in our May 2018 newsletter)
Last year’s Budget introduced the ability for retirees older than 65 to contribute up to $300,000 each into super where the proceeds arose from the sale of their home.
The work test did not have to be met.
It is important to note that to qualify, the contract for the sale of the home must be dated after 30 June 2018. It is not enough just to settle after 30 June 2018.
Other important points:
- It is a once only contribution. You can’t do $100,000 from the first sale and do $200,000 on a later sale.
- The property must be located in Australia.
- The dwelling must be affixed to the land (no boats, mobile homes or caravans).
- Proceeds must be contributed to super within 90 days of receipt.
- It will affect any Age Pension benefits as it will add to your assets and will be deemed for income purposes.