What are Downsizer Superannuation Contributions?
- Downsizer Superannuation Contributions are a way for Australians aged 60 years or older to make a contribution to their superannuation fund after selling their family home.
- The contribution is capped at $300,000 per individual or $600,000 per couple, and can only be made once per person.
Who is eligible?
- To be eligible, you must be 60 years or older at the time of making the contribution.
- The property you are selling must have been owned by you or your spouse for at least 10 years.
- The property must have been your main residence at some point in time.
- The contribution must be made within 90 days of receiving the proceeds from the sale of the property.
What are the benefits?
- Downsizer Superannuation Contributions can provide a tax-effective way to boost your superannuation savings, as the contribution is not subject to the usual contribution caps or the work test.
- The contribution is also exempt from the age test, which means you can still make contributions even if you have reached the age where you are no longer able to make regular contributions.
- Additionally, the contribution is not included in the Age Pension assets test for up to 10 years.
What are the limitations?
- Downsizer Superannuation Contributions can only be made after selling your family home, so it may not be a suitable option for those who are planning to downsize but do not own a home.
- The contribution can only be made once per person, so it may not be a significant option for those with high-value homes or who are looking to downsize multiple times.
- The contribution must be made within 90 days of receiving the proceeds from the sale of the property, so it is important to plan ahead and ensure you have the necessary funds available.
Overall, Downsizer Superannuation Contributions can be a valuable option for Australians looking to boost their superannuation savings in retirement. However, it is important to consider your individual circumstances and seek professional advice before making any decisions.
