I 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’m in a position to make by the end of September)? That would push my balance over the $2 million threshold.
I’m 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.
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.
 Downsizer contributions can be made irrespective of your superannuation balance and no upper age limit applies.Credit: Peter Rae
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.
Furthermore, concessional contributions can also be made irrespective of your total super balance.
Additionally, bear in mind that you start the pension 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.
I’m a single 72-year-old home owner and self-funded retiree. After selling and buying a new home, I’ll have $411,000 in assets – $379,000 in shares and $32,000 cash. I understand the assets test threshold for a single home owner is $321,500, so I’ll be $89,500 over. Centrelink’s calculator estimates I’d receive an age pension of $879 a fortnight.
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?
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.
If we also allow $15,000 for motor vehicles and household furniture, your assessable assets are $426,000. At that level, your age pension will be determined under the assets test, and the income test won’t apply. Your pension should be about $835.50 a fortnight, slightly lower than the calculator estimate.
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I started an SMSF three years ago with about $800,000, transferring from a super fund so I could manage the share component myself. The balance is now $700,000, with $200,000 in shares and $500,000 in term deposits earning just 3 per cent.
I can’t find secure alternatives that pay more, so I’m considering moving the $500,000 cash back to a super fund, where I believe returns would be higher overall. Does this sound reasonable?
It appears your inexperience with investing has left you with a portfolio producing far lower returns than a standard super fund. In a retail super fund, your money would typically be spread across a mix of assets – Australian and international shares, property, infrastructure, cash and deposits – which should generate stronger long-term returns.
Transferring the cash to a retail super fund is likely to improve your returns and relieve you of the ongoing administration and decision-making required to run your own SMSF.
Noel Whittaker is author of Retirement Made Simple and other books on personal finance.
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
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