Downsizer Super Contribution
Australians who are 65 years old or older may make a downsizer contribution into their superannuation of up to $300,000 from the proceeds of seeling their home.
The downsizer contribution can still be made even if the contributor has a total superannuation balance (TSB) greater than $1.6 million.
A few points are:-
- will not affect the TSB until 30 June at the end of the financial year
- can only be made for the sale of one home
- not tax deductible and will be taken into account in determining eligibility of the Age Pension
- there is no requirement to purchase another home
- must have held an ownership interest in the home for 10 years
- limited to the lesser of $300,000, or the total capital proceeds received from the sale of the interest in the home
- can be both owners (i.e. $300,000 each)
- within 90 days of the change of ownership.
Early planning will ensure you don’t miss the boat.
AcctWeb
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Heathmont Financial Services Pty Ltd (ABN 68 106 250 104) trading as Heathmont Financial Services is a Corporate Authorised Representative (No. 262098) of Knox Wealth Management Pty Ltd (ABN 74 630 256 227), Australian Financial Services Licence Number (AFSL) 513763.
Julian McGoldrick is an Authorised Representative (No. 262098) of Knox Wealth Management Pty Ltd AFSL 513763.