Tax Planning Over 60: How to Unlock Australia’s Best Tax Break

When you hit 60, your relationship with the Australian Taxation Office (ATO) changes for the better. It is the preservation age where the rules shift, allowing you to access your superannuation tax-free in most cases. A great retirement is not just about how much you’ve saved, but how much you keep.

1. The Tax-Free Super Milestone

For most Australians, once you turn 60 and meet a condition of release, any lump sums or regular pension income you draw from your super are generally tax-free. You also typically do not need to declare these tax-free withdrawals on your tax return.

2. Transition to Retirement (TTR) Strategy

If you are still working, you can start a transition to retirement income stream (TRIS).

- You continue working while drawing a pension from super.

- You can salary sacrifice income into super.

- This can reduce taxable income while maintaining lifestyle.

3. Boost Your Balance

Catch-up concessional contributions:

- If your super is under $500,000, you may use unused caps from prior years.

Downsizer contributions:

- Up to $300,000 per person can be contributed after selling your main residence.

4. Structuring Non‑Super Assets

Selling assets like shares or property can trigger capital gains tax. Planning the timing of sales can reduce tax significantly.

Why Timing Matters

Strategic planning ahead of retirement or asset sales helps minimise tax and maximise outcomes.

Disclaimer:

This document contains general information only and is not financial advice. Consult a qualified professional before making decisions.