New rules to benefit those downsizing to retirement1 Dec 2018
Downsizers over 65 can now make an after-tax contribution to their super of up to $300,000, using the proceeds from the sale of their main residence.
Usually, people aged 65 to 74 need to satisfy a work test to make voluntary super contributions, while people aged 75 and over are generally unable to contribute to their super.
However, that changed on 1 July 2018, with those aged 65 and over now able to make a non-concessional contribution to their super of up to $300,000 using the proceeds from the sale of their main residence – regardless of their work status, superannuation balance, or contribution history.
For couples, both spouses are able to take advantage of this opportunity, which means up to $600,000 per couple can be contributed toward super.
Proceeds from the sale of your main residence that are contributed into super as part of this initiative can be made in addition to any other before-tax or after-tax contributions you’re eligible to make.
The government said the aim is to encourage older Australians, where appropriate, to free up homes that no longer meet their needs and make room for younger growing families.
Bear in mind that like with all-important financial decisions, it's a good idea to get financial advice before deciding what's right for you.
For more information about downsizing contributions, visit the ATO website.
If your considering a downsize, Origin Projects has a range of estates across metropolitan Perth with many options for low maintenance living in highly sought after locations. Explore our many estates to see what lifestyle you may aspire to live.
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