Downsizing contributions into superannuation

If you’re 65 years old or over, the government’s new policy will allow you to downsize your family home and inject up to $300,000 of the surplus into your super account.

From 1 July 2018, you will be able to make a non-concessional (after-tax) contribution into your super account from the sale proceeds of the family home.

This could mean up to $300,000 for individuals or up to $600,000 for couples going into your super.

Your downsizer contribution won’t count towards your contributions caps or be affected by the total superannuation balance test in the year you make it. However, there’s still a transfer balance cap of $1.6 million that you can move into retirement phase.

You’re not required to be in employment, or even purchase another home.   

Eligibility requirements

•    You must be 65 or over.

•    The contract of sale must be entered on or after 1 July 2018.

•    Your home is in Australia.

•    You or your spouse must have owned your home for 10 years or more.

•    Your home is not a houseboat, mobile home or caravan.

•    The home must qualify for the main residence capital gains tax exemption in whole or in part.

•    The downsizer contribution needs to be made within 90 days of home changing ownership (usually the date of settlement).

•    You must not have made a downsizer contribution to your super previously.

You can find further information on the Australian Taxation Office website.

Will it be right for you? 
To discuss your needs in detail, speak with one of our accredited financial advisers on 1300 130 780 today.