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Downsizer contributions

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Upsize your super with downsizer contributions.

How does it work?

If you’re aged 65 or more and sell a property after 1 July 2018 that has been your main residence for 10 or more years, you may be able to contribute some of the proceeds to your super account¹.

May be suitable if…

You want to sell your home and use the money to boost your retirement savings.

What are the benefits?

  • Get an additional $300,000 ($600,000 for couples) into super, regardless of your work status, super balance or what you’ve already contributed under the ordinary concessional and non-concessional contribution caps.
  • Boost your retirement income by starting a retirement income stream.

Case study

Bi'nh and Sui-Lee are 77 and 70 and retired. They sell their home on
20 August 2018 after owning it for 12 years and receive $1.2 million.

They can both make a non-concessional super contribution of $300,000 ($600,000 in total). They can do this even though Sui-Lee doesn’t meet the contribution 'work test' and Bi`nh is over 75.

They can make these contributions regardless of how much they already have in their super accounts and the contributions won’t count towards the non-concessional contributions cap. Also, it wouldn’t matter if the house was only owned by one of them.

Important things to consider

  • Downsizer contributions aren’t tax deductible.
  • The contract for sale must be entered into on or after 1 July 2018.
  • The contributions must be made within 90 days of settling on the property sale.
  • The money will count towards your transfer balance cap if used to start a retirement income stream.
  • The money will count towards your total super balance which may affect your ability to make future super contributions.
  • This strategy may reduce Age Pension entitlements.
  • You should take into account any costs associated with selling your home (and buying a new one if you choose to do so).
  • Other eligibility conditions apply – see the Australian Taxation Office (ATO) website for more information.

1. Subject to eligibility criteria.

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