The Australian Financial Review --- Page: 39 : 10 February 2007 Original article by Zoe Fielding
ABIX Summary
Superannuation can sometimes be used to reduce mortgage payments for older Australians. Those over 60 can withdraw super tax-free from 1 July 2007. Until then one could pay interest only and salary sacrifice the principal into super. For many this would halve repayments. The money that is salary sacrificed would not attract income tax but the 15 per cent super surcharge. Meanwhile, the amount put into super would be taxed at a lower rate and the money to pay off the mortgage could be withdrawn as a lump sum after a few years.
