Q: I am one of those people (and my wife) who made the decision years ago to invest in property rather than super. Now at 60, (wife 57) I am retired and live off my property investments. I would like to get rid of the properties at about age 65. Mainly because of the worry, and maintenance upkeep, and to give us more free time as I manage the properties. I have a SMSF with Australian blue-chip shares now worth $80,000. I don’t use managed funds or master trusts. If we sell, combined value about $4 million and capital gains tax will eat into the sale value. Can we still contribute $180,000 each, per year to super and thus reduce our CGT liability?
A: The $180,000 limit that you refer to in your question was the after-tax contribution limit that was applicable until 30 June 2017. After-tax contributions are known as non-concessional contributions, and the annual limit is known as the non-concessional contributions cap.