Getting money into super
Downsizer contributions by members aged 65 and over
From 1 July 2018, members aged 65 and over may be able to make contributions of up to $300,000 from the proceeds of selling their home.
The downsizer contributions are not included under the non-concessional contributions and will not affect their contributions cap. The downsizer contributions can still be made even if their total super balance is greater than $1.6 million.
|Note: The proceeds of downsizing into superannuation measure was one of several announcement in the 2017-18 Budge as part of the government's package of reforms to reduce pressure on housing affordability.|
The sale of any dwelling in Australia (other than a caravan, houseboat or mobile home) can qualify the member to make a contributions, provided the dwelling has been owned for at least 10 years.
Both members of a couple will be entitled to take advantage of the measure which is designed to reduce barriers to downsizing for older people.
This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.
Last modified: Wednesday, November 4, 2020