Requirements in respect of a DSC are as follows:
- Individual is 65 years old or over at the time of the contribution
- The amount contributed is from the proceeds of selling a qualifying dwelling in Australia where the exchange of contracts for sale occurs on or after 1 July 2018
- The 10 year ownership condition is met prior to the sale
- A gain or loss on disposal of the dwelling must have qualified for the main residence CGT exemption in whole or part
- A DSC must be made within 90 days of receiving the proceeds of sale, which are usually received on the date of settlement
- No previous downsizer contribution has been made
However, you should be aware that making a downsizer contribution into superannuation may adversely impact on your centrelink entitlements as a result of you having a greater level of superannuation assets.
Further information on the new downsizer superannuation contribution contribution is available on the ATO website here.
Credit: Ivy Feng