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Find out what your peers are asking – based on real-life questions submitted to TechConnect.
By Scott Quinn, Senior Technical Manager
A: Clients may contribute part of the value of the sale proceeds into super and still be eligible for the Centrelink sale proceeds of a principal home 12-month exemption. Under this exemption the amount intended to be used to buy, build, rebuild, repair or renovate a new principal home is exempt under the Centrelink asset test for up to 12-months. It is important to note that the intention must be genuine. The exemption is ordinarily limited to the earlier of 12 months or until your client’s intention changes. Clients can request an extension of an additional 12-months in some circumstances.
If your client is less than pension age, their superannuation funds in accumulation phase are ordinarily exempt from both the assets and income test.
If your client has attained age pension age, funds in accumulation will be deemed under the Centrelink income test. If the client commences an account-based pension, funds will be deemed under the Centrelink income test regardless of age.
More information on exempting home sale proceeds can found on the Human Services Operations manual and Social Security Guide.
If you have any questions, or would like more information, please contact the IOOF TechConnect team on 1300 650 414.
DisclaimerThe information in this section of the website is intended for financial advisers only and is not to be distributed to clients. It has been prepared on behalf of Australian Executor Trustees Limited ABN 84 007 869 794 AFSL 240023, IOOF Investment Management Limited ABN 53 006 695 021 AFSL 230524, IOOF Investment Services Ltd ABN 80 007 350 405, AFSL 230703 and IOOF Ltd ABN 21 087 649 625 AFSL 230522 based on information that is believed to be accurate and reliable at the time of publication.