![\"\u00a0Downsizer](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/d1576170bcb1a13ac7346001e6570e7b869e44dc.jpeg\")
<\/p>\nI am 70 and my superannuation balance at June 30, 2025 was just under $1.9 million. Am I allowed to make a non-concessional contribution this financial year to bring it up to $2 million, and then follow that with a downsizer contribution (which I\u2019m in a position to make by the end of September)? That would push my balance over the $2 million threshold.<\/p>\n
I\u2019m still working, so my employer will continue making super guarantee contributions on my behalf. I also plan to top up my concessional contributions to the $30,000 cap by the end of the financial year. Is this strategy permitted by the ATO and free from penalties or additional tax? I understand that once I start a pension, any balance above $2 million must stay in the accumulation phase.<\/p>\n
Downsizer contributions can be made irrespective of your superannuation balance and no upper age limit applies. So provided you meet the other eligibility criteria, you could certainly make the downsizer contribution in the scenario you have.<\/p>\n
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\u00a0Downsizer contributions can be made irrespective of your superannuation balance and no upper age limit applies.Credit: Peter Rae<\/p>\n
As your total super balance was greater than $1.88 million but less than $2 million, the maximum non-concessional contribution you can make this financial year is $120,000.<\/p>\n
Furthermore, concessional contributions can also be made irrespective of your total super balance.<\/p>\n
Additionally, bear in mind that you start the pension<\/a> by transferring a sum to it, but there is no limit to what that balance could go to, provided you are taking the required pension withdrawals each year. This could happen if the earnings on your fund exceeded the withdrawals.<\/p>\n I\u2019m a single 72-year-old home owner and self-funded retiree. After selling and buying a new home, I\u2019ll have $411,000 in assets \u2013 $379,000 in shares and $32,000 cash. I understand the assets test threshold for a single home owner is $321,500, so I\u2019ll be $89,500 over. Centrelink\u2019s calculator estimates I\u2019d receive an age pension of $879 a fortnight.<\/p>\n Will I be further penalised under the income test because my share portfolio generates $29,274 a year in dividends and $10,760 in franking credits? Am I overlooking something, or is the $879 figure realistic?<\/p>\n Both your shares and cash are deemed assets, which means the actual dividends and franking credits are ignored for the income test. Instead, Centrelink applies a deemed income rate. Based on your $411,000 in financial assets, the deemed income is $306 a fortnight.<\/p>\n