Earlier this month, the government introduced a bill into Parliament that will allow people to make an additional non-concessional contribution of up to $300,000 into superannuation when they sell their home which they’ve held for at least 10 years.
Townsends Business and Corporate Lawyers special counsel Michael Hallinan said during the 10 years before the disposal of property, the same ownership interest must be held at all times.
“Consequently, the ownership interest must retain its identity for that the 10-year period,” Mr Hallinan explained.
Issues of identity can therefore arise where the original ownership interest has been subject to a partial sale, he said.
“Technically when you subdivide, you create a new title, so you may not satisfy the 10-year period,” he said.
“The other way this can happen is if you add more land to your existing title, which means you’re creating a new title and so you don’t have the same identity of title, which means you may not satisfy 10-year period.”