Older Australians can tip $300,000 from selling the family home into their superannuation

DOWNSIZING the family home will become more attractive to Australians aged over 65 with Budget measures allowing $300,000 from a sale to be put into superannuation.

The downsizer rules will apply to people who sell their main residence.

AUSTRALIANS aged 65 plus will be able to add an extra $300,000 each into their superannuation fund from the proceeds of selling the family home.

The move, to start from July 2018, will apply to people who sell their main residence that has been owned for at least 10 years.

Both members of a couple will be able to use it for the same home, each making a non-concessional — after-tax — contribution of up to $300,000.

“These contributions will be in addition to those currently permitted under existing rules and caps and they will be exempt from the existing age test, work test and the $1.6 million balance test for making non-concessional contributions,” the Budget says.

Treasurer Scott Morrison introduced the changes to super in this year’s budget. Picture Kym Smith

The move will make downsizing more attractive to retirees who often have a lot of money tied up in their home and not enough in super.

It will also free up larger homes for young families to buy.

The move is forecast to cost the Budget $30 million over four years.

Superannuation has been left largely untouched in the Budget, as the industry works on a wide range of rule changes — announced in last year — that come into force on July 1.

Some tweaks were made to “improve the integrity of the superannuation system” for self-managed super funds, raising an extra $24 million over four years.

This News Corp Australia article is published here in partnership with Suncorp

Originally published as Older Australians can tip $300,000 from selling the family home into their superannuation