Age for downsizer contributions dropped to 60

People aged 60 years and over are now eligible to make downsizer contributions of up to $300,000 per person ($600,000 per couple) from the sale proceeds of their home into their super.

Eligible downsizer contributions won’t impact or count towards concessional or non-concessional super contribution caps.

What you need to know

• You must complete a downsizer contribution form either before you make your downsizer contribution, or when you make your downsizer contribution.
• During the 2022 Federal election the Government announced it would support a further reduction to the downsizer eligibility age to 55 years, however this is not yet law. Any contributions made from members who are 55 to 59 years old will be ineligible for treatment as downsizer contributions and will be reported as personal contributions.
• Your home needs to have been owned by you or your spouse for 10 years or more prior to the sale – the ownership period is generally calculated from the date of settlement of purchase to the date of settlement of sale.
• Your home needs to be in Australia and is not a caravan, houseboat, or other mobile home.
• The proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be entitled to such an exemption if the home was a CGT rather than a pre-CGT asset (acquired before 20 September 1985)
• You make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually at the date of settlement.
• You have not previously made a downsizer contribution to your super from the sale of another home or from the part sale of your home.

How we can help

Superannuation is generally held inside an Industry Super Fund, Government Fund or Self-Managed Super Fund (SMSF). More and more people are opting for an SMSF, as it can provide much greater flexibility and a way of keeping costs down.

TaxAssist Accountants can assist with:

• Setup and Administration of Self-Managed Super Funds (SMSF)
• Assistance with Lump Sum withdrawals
• Assistance on Property, Shares & Investments inside Superannuation Funds
• Audits on Super Funds

If you need help with Super, contact us today.

Last updated: 15th July 2022