I am 65, not working and with no superannuation. I last had super about 8 years ago when I withdrew the balance of $60,000 on reaching my preservation age.
In FY25 I am selling an investment property (vacant land) owned since 1990. My share of the capital gain will be around $400,000 so with the 50% discount my taxable income will be $200,000. I expect to realise these funds in January 2025.
Am I entitled to:
1. open a superannuation account at age 65 if I am not working? My understanding is yes and I would not have to meet any work test until age 67.
2. with some the sale proceeds make a personal contribution equal to my unused concessional contributions caps from FY20 to FY24 (i.e. utilise the 5 year bring forward provision) plus my concessional contributions cap amount for FY25
3. lodge a notice of intent with the super fund to claim these contributions as a tax deduction.
Is this a legitimate strategy to reduce my tax payable? My understanding is that this contribution amount would be taxed at 15% rather than marginal tax rates saving about $30,000 in tax.
As I am 65, can I claim my balance in super as a tax free lump sum after the super fund has acknowledged my NOI, or are there any rules around accessing these funds within the same FY or any other restrictions?
Thank you.
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