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.
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.