Is pension account or rent earned on own home in retirement more tax effective?

(Newbie)Newbie

10 Oct 2025

I am 70 years old and still working full-time but shall retire next year. I own my own home valued at around $600K. I have approximately $300K in superannuation pension account. I am considering renting out my home and moving overseas. Rental income approximately $800pw. I am trying to work out if selling my home and putting proceeds into pension account offers better or worse tax position. Purely looking at this from tax perspective and acknowledge there are other factors to consider

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Taxduck

(Taxicorn)Taxicorn

11 Oct 2025

Be aware if you move overseas before selling your home then generally you are not eligible for the main residence exemption from CGT. (if home was purchased after 20 September 1985).

CGT will apply on your entire ownership period. See when an exemption may apply.

Main residence exemption for foreign residents | Australian Taxation Office

From a tax point of view this may be the most significant factor to consider.

As a foreign resident, income from the rent will incur tax of 30%

Tax rates – foreign resident | Australian Taxation Office

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ellisg

(Newbie)Newbie

11 Oct 2025

Thank you very much. That is not something I had considered. I was already erring towards selling and depositing in pension account from the perspective of liquidity and this may well be the deciding factor 😊

I will have to factor in losing 15% when I deposit into my pension account

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Is pension account or rent earned on own home in retirement more tax effective?

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