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James Coyle
James has over 35 years experience in financial services with particular expertise in two of the key components of retirement finance - Superannuation and the Age Pension. He is passionate about providing the guidance and support that can help older Australians enjoy their best possible retirement. He lives in regional Victoria surrounded by dogs and chooks.
I am 69, my husband is 70. We have recently sold our investment property. Will the new rules from 1 July, allow us to add the equity from this property to a ‘downsizer’ contribution to our super fund?
Hi Jaqualine, thank you for your question. For you and anyone else who would like to have a discussion with someone they can trust about your options and the potential pros/cons we do offer financial advice consultations.
Our financial advice consultations are designed to help you better understand your needs and goals along with some of the actions you can consider to help you achieve those goals. The consultation is online, goes for up to 45 minutes and costs $150.
CLICK HERE to book now.
If a person only has personal superannuation, is single and wishes to downsize, can he or she put up to $300,000 into superannuation and get a reduction in application of the Assets Test? In the old days, if a person received some superannuation as part of a property settlement/divorce, it could not automatically be rolled into their superannuation account (if they had one). Lots of people (especially women) have been shafted from superfunds when they quit work to start a family, or when they were terminated due to a workplace injury and given nothing more than a refund of contributions plus a tiny amount of interest.
Hi. thanks for your question. A single person can use the downsizer option to contribute up to $300,000 into superannuation. This $300,000 will however be included in the Age Pension assets test and deemed income will also be included in the income test. A couple could contribute up to $300,000 each, $600,000 in total. If one member of a couple is not yet of Age Pension Age, and their super is still in an accumulation account, the younger partner’s super will not be included in the Age Pension assets test. You can read more about this here.
I would like to know if a single person who has a Personal Superannuation Account (no employer based super) can get a 40% reduction in the Assets Test on the $300,000 contributed from downsizing.
Hi. I am not entirely sure what you are referring to here but it could be the treatment of lifetime income streams such as a lifetime annuity. These are typically purchased from superannuation savings. Only 60% of the purchase price of the annuity, until age 84, is assessed under the assets test, therefore 40% is not. After age 84 only 30% is assessed. Challenger has some good information about this which you can find here.
If you want to talk to one of our Financial Advisers about your retirement strategy you can also book a consultation.
Hi, I don’t see any reference to the ability to carry forward unused concessional contributions from previous years. This is a very important mechanism, especially for those approaching retirement. See ATO website for full T&Cs.
Hi Peter. Thanks for your comment and you are correct that this is a very important provision and it is a great topic for a future article. Thank you. This article was focused on the recent legislative changes that become effective from 1 July 2022 rather than all the contribution rules.
Thanks again
Hi much cash can you have in the bank before it affects your pension
Hi Peter, thanks for reaching out. The total value of assets you can have before it impacts your pension varies depending on things like if you are single/couple and homeowner/non-homeowner. I recommend you go through our quick and free ELIGIBILITY CALCULATOR to understand how much pension you may be eligible for and which threshold applies to you.
Turning 60 in July 2022. can I sell my investment property and contribute to my super to minimize my capital gains tax. Currently facing a potential capital gains tax bill of $300,000 !
Hi Phil, thank you for reaching out for help planning your next steps. If you would like to have a discussion with someone you can trust we do offer financial advice consultations.
Our financial adviser can talk with you about the options you can consider regarding the sale of your investment property, Super contributions and many other topics. The consultation can be either online or via phone call, goes for up to 45 minutes and costs $150.
CLICK HERE to book now.
My wife is 71 and I am 72 we both have superannuation accounts in the pension phase. In addition I have a defined benefit SA Super income which is taxed. Neither of us is working. My wife’s superannuation balance is approximately $700,000. With the removal of the work test it is my understanding that I can now make a $3,000 Spouse contribution to my wife’s superannuation and be eligible for a tax rebate?
Would appreciate confirmation.
Hi Phil thanks for reaching out! We’re happy for one of our other members to comment if they know the answer from experience but from out perspective we think you should reach out to an accountant/tax agent for clarity as to your options.