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 from 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
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.