With new changes to superannuation, Australians aged 65-plus who have owned their home for more than 10 years will be able to make a $300,000 non-concessional contribution to their superannuation accounts from its sale proceeds from July 2018.
While it is designed to remove a barrier for empty-nesters to free up their larger homes for the next generation of families, it can also have disastrous consequences for their pension payments.
According to the new structure, those with their equity tied up in their family homes, are eligible for higher payments, removing the desired appeal of selling. Essentially, their pension decreases, even though the level of their wealth hasn’t changed.
Concerned about the changes? Read the full story here.