More older Australians will be able to use some of the profit from the sale of the family home to top up their superannuation, under changes to be announced in the federal budget.
Currently, people older than 65 years who sell the asset can make a one-off contribution to their retirement savings of up to $300,000.
The budget to be handed down on Tuesday will lower the age threshold to 60 years from July 1, 2022, the Australian Financial Review reported on Monday.
As well, the work test for self-funded retirees – which limits super top-ups – will be scrapped for those aged between 67 and 74 years, the AFR said.
At present, this group has to be employed for at least 40 hours in a consecutive 30-day person in a financial year before they can make concessional or non-concessional contributions.
“We are very conscious of giving retirees more control over their money,” Treasurer Josh Frydenberg told the AFR in an interview.