downsizer contributions

Downsizer contributions have been available to members of complying superannuation funds since 1 July 2018. From this date, a person aged 65 years or older will be able to make a contribution up to $300,000 from the proceeds of selling their main residence. A recent legislative amendment originally from the 2021 Federal Budget proposes that from 1 July 2022 the age limit will reduce from 65 to 60.

This contribution will be outside the current non-concessional rules.

To be eligible to make the contribution, they must have owned their main residence for at least 10 years. It is available to both members of a couple for the same home, even if only one is on the title deed.

These contributions are in addition to existing rules and caps and are exempt from the:

• age test
• work test, and
• $1.6 million total superannuation balance test

for making non-concessional contributions.

Source: Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021

Please feel free to contact your RCB Advisors’ team member for any further assistance