From 1 July 2018, Australians aged 65 and over will be able to make an after-tax contribution to their super of up to $300,000 using the proceeds from the sale of their main residence – regardless of their work status, super balance, or contribution history.
For couples, both spouses will be able to take advantage of this opportunity, which means up to $600,000 per couple can be contributed toward super.
The work test doesn’t apply in this instance. And, the proceeds from the sale of your main residence that are contributed into super can be made on top of any before or after-tax contributions you’re eligible to make, meaning you can exceed the contribution caps.
What if I’m making a spouse contribution?
If you’re making an after-tax contribution to your spouse (husband, wife, de facto or same-sex partner), if they’re between 65 and 69 (inclusive), the work test requirements will apply to them.
You might also be interested to know that if you do help them by making an after-tax contribution into their super, you might be eligible for a tax offset.
Note, if your partner is under age 65, work test requirements won’t apply to them. And, if they’re 70 or over, they will no longer be eligible to receive any spouse contributions.
Is there an age I can no longer make contributions?
Once you turn 75, you can no longer make any type of voluntary contribution to your super, but compulsory employer contributions can still be made on your behalf.
Typically, you’re eligible for compulsory employer contributions, under the Superannuation Guarantee scheme, if you earn more than $450 a month, with employer contributions no less than 9.5% of your before-tax salary.
Other things to keep in mind
Your circumstances and retirement goals will play a big part in what you decide to do and as the rules around super can be complex, it might be a good idea to chat to your adviser.
Source: AMP News & Insights.