Many over 55s reach a point where they feel like they no longer need a large family home, and with the Federal Government now making it possible for eligible individuals aged 55 years or older to make a downsizer contribution to their superannuation, now is the time to consider that move.
Downsizer contributions give your super an instant boost to your balance in retirement, and this strategy would work well for over 55s who want to downsize, but don’t want to give up the benefits of home ownership,
The downsizer scheme allows people aged 55 and over to make a contribution of up to $300,000 from the sale of their home into their superannuation account. A single person may contribute up to $300,000 from the sale of their home, whilst a couple can each contribute $300,000 for a combined total of $600,000.
Downsizer contributions can be made in addition to any concessional and non-concessional super contributions you make, without needing to worry about exceeding your annual cap amounts.
It’s important to carefully weigh up all the pros and cons and potential impact on any government entitlements before you sell your home, and If you are considering making a downsizer contribution, you should seek professional advice on how it may affect your particular situation.
Visit the ATO website for more information on eligibility and how to make a downsizer contribution.