Downsizing into superannuation
Your super is your future, whether now or in a year or two. On the 1st of July 2018, the government introduced the Contributing the proceeds of downsizing into superannuation measure. If you are 65 years or older and meet eligibility requirements you may boost your super by making a downsizer contribution of up to $300,000 from the proceeds of selling your home. This can be $600,000 if you are a couple. For those who are eligible to utilise the downsizer contribution, this a great way to make a positive lifestyle change and still put money away.
What do you need to know?
Though this new contribution has been labelled the “downsizer” contribution, you don’t actually have to purchase a smaller home in the process. As long as you are a homeowner, aged 65 or older, and are selling your home, then you are not required to purchase another home in order to qualify for the contribution.
The downsizer contribution must be made into your Super account within the first 90 days after change of ownership/settlement of your property.
You need to have owned your residence for at least 10 years, and it must be considered the family home under the capital gains laws.
Remember that caravans, houseboats, and mobile homes do not qualify.
Age Pension eligibility could be affected by any remaining assets from your home sale.
Your contribution is not eligible for a tax deduction.