From 1 July 2018, a new measure allows older Australians to contribute the proceeds of the sale of their family home to super. Australians aged 65 and over will be able to contribute up to $300,000 per person (up to $600,000 for a couple), over and above the existing contribution limits.1 The government is hoping this measure encourages older Australians, where appropriate, to free up homes that no longer meet their needs.
There are some important things you need to be aware of to be eligible for this incentive. These include:
- The home must have been your main residence and cannot be a caravan, houseboat or other mobile home;
- You or your spouse must have owned the property for 10 years or more prior to the sale;
- The exchange of contracts for the sale occurs on or after 1 July 2018;
- The contribution must be made to your super fund within 90 days after your home changes ownership; and
- You haven’t previously made a downsizer contribution to your super from the sale of another home.
In addition to the above eligibility criteria, you will also need to complete the downsizer contribution form which will be available from the ATO closer to 1 July 2018. It’s important to note that you don’t actually have to buy a smaller house. The measure only requires you to be able to make a downsizer contribution after the sale of your home and does not require you to make any subsequent purchase.
We're right beside you
Club Super also offers access to personal financial advice2 through Club Super Financial Planning. To book an appointment with Club Super Financial Planning, please call 1300 369 330 or send an email to firstname.lastname@example.org.
If you have any questions please contact Club Super on 1300 369 330 or email@example.com.
1 The downsizer contribution is not exempt from the $1.6 million cap on savings that is allowed to be held in a tax-free superannuation pension.
2 Fees may be charged for the provision of personal advice. Where the advice relates to your superannuation, these costs may be deducted from your superannuation account. All fees will be explained to you in detail prior to any advice being given and there are no ongoing commissions as our financial planners work on a fee-for-service basis.
Club Super Financial Planning advice is provided by My Super Future Pty Ltd (ABN 38 122 977 888) Australian Financial Services Licensee (AFSL no. 411440). The Trustee is not responsible for, and does not accept liability for the products or services or actions of My Super Future Pty Ltd. You should use your own judgment before taking up any product or service offered by My Super Future Pty Ltd.