Downsizer super contributions

downsizer super contributions

The commencement date for the ability to make a downsizer contribution to top up your superannuation is fast approaching.

If you are over 65 and are selling your home then, subject to meeting other criteria, a contribution into superannuation up to $300,000 per individual is available. A couple could therefore contribute up to $600,000.

The criteria for Downsizer Superannuation Contributions :

  • The contract must be entered into on or after 1 July 2018;
  • You must be 65 or older on the date you make the downsizer contribution;
  • The property sold is eligible for all or part of the main residence CGT exemption;
  • The property was owned by you for at least 10 continuous years; and
  • The downsizer contribution must be made within 90 days of settlement.

Please note that despite the term “downsizer” being commonly used to describe this contribution the sale of your home does not require you to downsize.  You could, for example, be buying a bigger home, a more expensive home or moving into a retirement home.

If you are in receipt of the age pension or other Centrelink benefit care should be taken to consider the impact of making a downsizer contribution.

Need more information about superannuation contributions when downsizing? If you are considering selling your home, or a property that was your home for a period, then it would be worthwhile discussing your options with your Stratogen Accountant.

Further reading about superannuation and SMSFs

Noosa Accountants & Financial Advisors Sunshine Coast QLD

Stratogen Accounting Noosa consists of a team of expert accountants and financial advisors who assist clients with building wealth and managing their superannuation funds. Our accounting firm’s head office is located at Noosa on the QLD Sunshine Coast. Our expertise is unparalleled and thus we work with clients living interstate around Australia and internationally.

We offer the full range of services expected of a leading edge accounting firm. Our personal services for individuals include accounting, tax returns, superannuation funds and financial planning, estate planning, insolvency services and asset protection. Our approach to both our clients is practical, open and honest.

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