From 1 July 2018, individuals aged 65 or over will be able to make a non-concessional (post-tax) contribution to super of up to $300,000 from the proceeds of selling their home.
The home sold must have been owned by the individual for the past ten or more years and have been the primary residence of the individual. Both members of a couple can contribute to super under this policy from the proceeds of the sale.
These contributions will not count towards the concessional or non-concessional contribution caps and the individual making the contribution will not need to meet the existing maximum age, work or $1.6m balance tests for contributing to super.
This measure will encourage some individuals to downsize into housing that is more suitable to their needs, freeing up larger family homes. It will assist people aged 65 and over who are currently unable to contribute all or any proceeds of the sale of their home into superannuation because of the existing restrictions and caps.