Government Incentives that Benefit Downsizing Retirees
Last Updated: 2025
Great news for retirees looking to transition into a comfortable retirement with Solana Lifestyle Resorts!
If you have thought about downsizing your home, legislative changes and government incentive are making the dream of living at Solana more accessible.
Learn more how the amendments made to the Social Services and Other Legislation Amendment (Incentivising Pensioners to Downsize) Act 2022 and the Downsizer Superannuation Contribution can benefit you!
Extended Exemption Period
Previously, retirees who receive a pension or income support benefited from a 12-month asset test exemption on the proceeds from the sale of their principal home. Coming into effect on January 1st, 2023, this exemption period has now been extended to 24 months. This means you can confidently wait for your new residence at a Solana Lifestyle Resort to be built, with no significant impact on your pension payments.
Lower Deeming Rate
Moreover, sale proceeds will be considered a separate pool from other financial assets with the legislation also introducing a lower deeming rate of 0.25% applied to sale proceeds. This change ensures that the income from your home sale won't significantly affect your income support payments while you prepare to transition into a Solana community.
Rent Assistance
For those in need of rental accommodation while your new home at Solana is under construction, you may also qualify for rent assistance during the exemption period but also when you ultimately, move into your Solana home.
Downsizer superannuation contribution
If you’re unhappy with the amount you have to spend in retirement, selling your house, buying a less expensive property and using the cash to boost your super balance and thus your income, could make sense.
From the 1 January 2023 the eligibility conditions were reduced from 65 years to 55 years or older. This means those, 55 and over, who sell their main residence and satisfy the eligibility criteria may contribute up to the lesser of $300,000 and the amount of the proceeds to their super as a downsizer contribution. If both member of a couple are eligible and the proceeds are $600,000 or more, the downsizer contribution can be up to $600,000 ($300,000 for each member).
Fulfill Your Retirement Dreams
These changes offer retirees a unique opportunity to reduce the financial impacts of downsizing and creates a pathway to a more comfortable and enjoyable retirement, to be enjoyed at a Solana Lifestyle Resort.
Contact us today to learn more!
Please note that the information provided is for general purposes and should not be considered financial advice. We recommend consulting a qualified financial advisor for tailored guidance.