Update – “Downsizing” Contributions
Are you over 65 and wish that you had put more money into Superannuation? Many older Australian’s are now realising that topping up Super just before retirement is not as easy as they imagined, or it may now be even impossible for some.
From 1 July 2018, individuals aged 65 or over will be able to contribute to super of up to $300,000 from the proceeds of selling their home. You may have heard it referred to as a downsizing contribution. Fortunately, you don’t have to move into an apartment or a smaller home to take advantage of the rule changes.
To qualify, the home sold must have been owned by the individual for the past ten or more years and have been the principal residence of the individual. Both members of a couple can contribute to super from the proceeds of the sale.
These contributions will not count towards the concessional or non-concessional contribution caps and the individual making the contribution will not need to meet the existing maximum age, work or $1.6m balance tests for contributing to super.
Of course, there are more complexities to the rules, so if you would like to know more, call our office for more information.