Downsizer contributions, are you eligible?
As of 1st July 2018, if you are over 65, you are able to use $300,000 from the sale of your current home to move across to your superannuation fund. If you’re part of a couple, you both can do this for the same property.
If you can answer yes to all of the below, you will be eligible to make a downsizer contribution to your super:
Note: If you sign a contract before 1 July 2018 you will not be eligible
• you are 65 years old or older at the time you make a downsizer contribution. There is no maximum age, no work test requirement, and no requirement for the contributor to be permanently retired.
• the amount you are contributing is from the proceeds of selling your home where the contract of sale was exchanged on or after 1 July 2018
• your home was owned by you or your spouse for 10 years or more prior to the sale
• your home is in Australia and is not a caravan, houseboat or other mobile home
No one’s arguing downsizing can sometimes be a confronting experience. It needs to be done at a pace you’re comfortable with, and when it is, many people are growing to find that downsizing your home and life is something to look forward to, plan and ultimately enjoy when the time comes.
Our real estate partners, Barry Plant can help you start to look into the downsizing process with no obligation or commitment to sell. If you’re curious about what your home could be worth, submit your application for a FREE, no obligation market appraisal.
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• the proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be entitled to such an exemption if the home was a CGT rather than a pre-CGT (acquired before 20 September 1985) asset
• you have provided your super fund with the downsizer contribution form either before or at the time of making your downsizer contribution
• you make your downsizer contribution within 90 days of receiving the proceeds of sale
• you have not previously made a downsizer contribution to your super from the sale of another home.
Head to the toolbox for more downsizing articles.
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