Downsizer Super Contribution

Downsizer Super Contribution

Human Hand Add A Coin In The Final Row

Australians who are 65 years old or older may make a downsizer contribution into their superannuation of up to $300,000 from the proceeds of seeling their home.

Human Hand Add A Coin In The Final Row

The downsizer contribution can still be made even if the contributor has a total superannuation balance (TSB) greater than $1.6 million.

A few points are:-

  • will not affect the TSB until 30 June at the end of the financial year
  • can only be made for the sale of one home
  • not tax deductible and will be taken into account in determining eligibility of the Age Pension
  • there is no requirement to purchase another home
  • must have held an ownership interest in the home for 10 years
  • limited to the lesser of $300,000, or the total capital proceeds received from the sale of the interest in the home
  • can be both owners (i.e. $300,000 each)
  • within 90 days of the change of ownership.

Early planning will ensure you don’t miss the boat.

Related Posts

member-img

Super growth reducing age pension drawdown

Less than half of new retirees accessed the age pension last year and of those who did, only one-qua

Read More
member-img

When You Should Consider Hiring a Business Lawyer

When you run a small business, every cent counts. It can be difficult to spend money on anything you

Read More
member-img

Pandemic Tips to Prepare Your Business

The COVID-19 pandemic has caught most of us off guard. Who would’ve thought that the world would s

Read More