Older Aussies can downsize to boost super

OLDER Australians will have more flexibility to top-up their super and tap the equity into their family home.

Australians aged 67 to 74 will no longer be required to meet the work test before they can make voluntary contributions to super.

“We will allow those aged over 60 to contribute up to $300,000 into their superannuation if they downsize their home, freeing up more housing stock for younger families,” Mr Frydenberg said.

The existing $1.6m cap on lifetime super contributions will continue to apply, rising to $1.7m from July.

The government is also changing the Pension Loans Scheme by providing immediate access to lump sums of about $12,000 for singles and $18,000 for couples, effective from July 1, 2022.

Participants will be allowed to access up to two lump sum advances in any 12 month period, up to a total value of 50 per cent of the maximum annual rate of the age pension.

The government will also introduce a No Negative Equity Guarantee so borrowers won’t have to repay more than the market value of their home. It will also allow older Australians to move out of legacy retirement products, together with any associated reserves, for a two-year period.

The government also increased the amount that can be released under the First Home Super Saver Scheme from $30,000 to $50,000 for those seeking to buy their first property. The super guarantee increase from 9.5 per cent to 10 per cent is set to start in July.