From 1 January 2023 downsizer contributions are now available to individuals aged 55 years and over. This means eligible individuals can contribute up to $300,000 from the proceeds of the sale of their home into their superannuation fund. Previously, the downsizer eligibility age was 60 years old from 1 July 2022.
Some of the other main eligibility requirements are that the home must have been owned by you or your spouse for 10 years or more prior to the sale. It must also be in Australia, and the proceeds from the sale are either exempt or partially exempt from capital gains tax. The contribution also needs to be made within 90 days of settlement.
The lowering of the eligibility age will allow more of our clients to utilise the downsizer contribution.
To gain a clearer understanding of how this may relate to your specific circumstances or to learn more about the other eligibility requirements, please contact our office.
