Noel Whittaker answers your money questions

James is confused as to whether his money is better in super or property when the time comes to claim an Age Pension, so finance guru Noel Whittaker points him in the right direction.

Q.  James

I have an investment property that I rent out and I’m wondering whether I should sell it and put the proceeds into super? I know that Centrelink will assess the property as an asset but once I reach Age Pension age, any money in super won’t be. Is this correct? I think I would have a profit of about $250,000.

A. The problem with doing this is that the legislation is currently being debated and is unclear. Keep in mind the intention is for a lifetime cap of $500,000 for non-concessional contributions backdated 10 years. Also, you have got your facts backwards – money in super is not counted until you reach pensionable age but then does count. I think at this stage in your life you should be to meet a good advisor with the aim of optimising your financial affairs. It may be possible to reduce the capital gain on the sale of the investment property if you are eligible to make a tax-deductible contribution to super.

Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions.

Do you have a question you’d like Noel to tackle? Email us at [email protected]

Written by Noel Whittaker

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