Elizabeth Kenny

Another reason to downsize …

May 31, 2018

Does this sound familiar? The children have all moved out, and you’re enjoying the space, but it’s really a bit big for just the two of you. The garden is looking beautiful, but it takes a lot of time to maintain – time that you could be spending with the grandchildren.

You may be ready to find something smaller. And now there is another great incentive to downsize!

From1  July, 2018, the government is allowing contributions to your superannuation fund from the sale of your home. If you are 65 or older and meet the eligibility criteria, you can contribute up to $300,000 from the sale of your home into your superannuation fund, without it counting towards your contribution caps.

Each member of a couple can contribute to their own fund, even if only one name is on the title. The contributions can be split evenly between the two funds or in any other proportion you choose.

So are you eligible?

You may be eligible for the downsizer contribution scheme if:

  • you are 65 years old or older at the time you make the contribution;
  • The contract of sale exchanges on or after July 1 2018;
  • you or your spouse has owned your house for 10 years or more; and
  • if your home is in Australia and is not a mobile home, caravan or houseboat.

So if you’re looking to sell the family home and downsize, firstly check with your superannuation fund to make sure they accept downsizer contributions, then contact us to discuss.

We can assist you through the downsizer contribution scheme and help you take advantage of this great financial incentive.

For more information click on the following Hyperlink:

https://www.ato.gov.au/Individuals/Super/Super-housing-measures/Downsizing-contributions-into-superannuation/