The age limit for downsizer contribution eligibility has been reduced
For some, selling the family home can be a great way to release equity and use it to make an extra contribution into your super account.
Recent changes to the Government’s downsizer contribution initiative now allow eligible Australians 55 years or older (formerly 60 years or older) to invest proceeds from the sale of their house into their super. These contributions are exempt from many standard contribution caps and rules, so you can give your super a last-minute boost.
Are you eligible?
You could be eligible for downsizer contributions if…
- You are 55 years of age or older
- You or your spouse have owned your home for more than 10 years prior to the sale
- Your home is in Australia and is not a caravan, houseboat, or other mobile home
- You have not previously made a downsizer contribution
The contribution must be made within 90 days of receiving the profits of the sale. This is typically, but not always, 90 days after settlement.
According to ATO figures from the end of March quarter, over 41,000 Australians collectively contributed over $10 billion into superannuation.1
Think smart
It is always important to source professional advice from a qualified financial advisor before making a downsizer contribution. Downsizer contributions could limit the access you have to liquid funds until you reach specific conditions of release, such as retirement. For some, this might mean you can’t address these funds until the age of 65.
Need help?
To find out more and receive specific advice tailored to your personal financial position, speak to one of our helpful financial planners at 1300 13 44 33.
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1 Bill to lower downsizer age passes both houses - ifa
The information contained in this article does not constitute financial product advice. REI Super does not give any warranty to the accuracy, completeness or currency of the information provided. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129