The incentive, which starts 1 July and was announced in the 2017 Federal Budget, will give homeowners aged 65-plus who sell a home they have lived in for 10 years or more the chance to make a concessional contribution of up to $300,000 into their super from the sale proceeds.
If you’re part of a couple, both members will be able to take up the offer – that’s up to $600,000 tax-free.
Neither contribution would count towards the annual $25,000 contributions cap either.
In the past, there have been few reasons for retirees to sell up their larger homes. Marketing and moving costs quickly add up, and any funds left over from buying a new house can be counted in the means test for the Age Pension.
But this new rule could change that, especially among homeowners who have seen the value of their homes jump dramatically since the housing boom.
Retirement villages and land lease communities could also prove winners for new residents as they don’t require stamp duty and free up more cash for you to enjoy your retirement.
No wonder the Government expects to make $30 million under the changes.
