Did you know from 1 July 2018, individuals aged 65 or over may use the proceeds from the sale of an eligible dwelling that was their main residence at some point in time to make superannuation contributions (referred to as superannuation downsizer contributions) up to a maximum of $300,000 per person (i.e. up to $600,000 per couple), without having to satisfy the age or gainful employment tests that usually apply.
Importantly, there is no requirement for an individual to actually ‘downsize’ by acquiring a smaller property, or to even acquire another property at all. Rather all that is required is that the individual (or their spouse) ‘downsizes’ by selling a property that was at some point their main residence and has been owned for 10 years or more.
You can then move into any living situation that suits you, such as aged care, living with family, a retirement village, a bigger or smaller dwelling than the one sold, or indeed a rental property.
As per the ATO website, additional links in regards to superannuation downsizer contributions are as follows:
- About the downsizer measure
- Eligibility for the downsizer measure
- How to make a downsizer contribution
- More information
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
For more information, speak to the super specialists at DGL – we are here to help!