Boost your super by downsizing in retirement.
From 1 July 2018, people aged 65+ will be able to use the proceeds from downsizing their home to contribute up to $300,000 to their super.
This will apply regardless of work status, superannuation balance, or contribution history; and you can use this initiative in addition to all other contributions you’re eligible to make.
And the deal is twice as good for couples. Both spouses can make a contribution, which means up to $600,000 per couple can collaboratively go towards super.
Conditions to qualify:
- The contracts for sale must be exchanged on or after 1 July 2018.
- The property that’s sold must have been your or your spouse’s main place of residence (at some point in time).
- You need to have owned the home for at least 10 years.
- The property being sold must be in Australia.
- Excludes caravans, mobile homes and house boats.
- No special Centrelink means test exemptions apply to the downsizing contribution. Due to this, there may be means testing implications as a result of downsizing, which need to be considered.
- Depending on your situation, additional rules may apply, so do your research!
Downsizer Contribution Forms (available from 1 July 2018 from the ATO) will need to be provided to make this type of contribution.
‘Downsizing’ contributions are not tax deductible and can be made regardless of super caps and restrictions that otherwise apply when making super contributions.
You can click here to look at the legislation on the ATO website.
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