What is Downsizer Contribution?
- Downsizer contributions are not tax deductible and will be taken into account for determining eligibility for the age pension. If you sell your home, are eligible and choose to make a downsizer contribution, there is no requirement for you to purchase another home.
|Date of effect||Date of effect The first financial year after Royal Assent of the enabling legislation Expected to be 1 July 2022|
- The eligibility age to access downsizer contributions will decrease from 65 years of age to 60.
- Currently, downsizer contributions enable those over the age of 65 to contribute $300,000 from the proceeds of selling their home to their superannuation fund.
- These contributions are excluded from the existing age test, work test and the $1.7 million transfer balance threshold (but will not be exempt from your transfer balance cap).
- Both members of a couple can take advantage of the concession for the same home. That is, if a couple have joint ownership of a property and meet the other criteria, both people can contribute up to $300,000 ($600,000 per couple).
- Downsizer contributions apply to sales of a principal residence owned for the past ten or more years.
- Sale proceeds contributed to superannuation under this measure will count towards the Age Pension assets test.