How to make a downsizer contribution
The ability to make a downsizer contribution is a once-in–a-lifetime opportunity: only one home sale ever is eligible for downsizer contributions.
It means that as of July 2018, if eligible, you are able to use $300,000 from the sale of your current home to move across to your superannuation. This can help Australian’s over 65 build a healthier super balance, which can really come in handy if your super is looking a bit scant. It’ll give you added security in the long-term, and who doesn’t want that?
1. Firstly check:
- Check the eligibility requirements for making a downsizer contribution
- Contact your super fund/s to check that they accept downsizer contributions
- We also recommend you seek out independent financial advice in relation to the age pension asset tests
2. Completing the downsizer contribution form:
- You need to provide this to your super fund when making – or prior to making – the contribution.
- The total amount of downsizer contributions each individual can make is your share of the total proceeds from the sale of your home up to a maximum of $300,000
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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3. Extension of time:
- Downsizer contributions must be made to your super fund within 90 days of receiving the proceeds of sale, usually the date of settlement.
- In some circumstances, you will be able to request a longer period for making a downsizer contribution. You will also be able to request a review of any decision, made by the ATO, in allowing an extension.
Head to the toolbox for more downsizing articles.
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