Good news for over-55s looking to downsize: the Federal Government has lowered the age at which you can add a voluntary contribution from home sale proceeds into your super.
Previously only open to those aged over 60, the downsizer scheme dropped its eligibility age to 55 as of 1 January 2023. This means that a single person over 55 can now contribute up to $300,000 from the sale of their home into their super account, while each member of a couple can also contribute $300,000, for a total of $600,000.
“This is a really important way for Australians to boost their retirement savings if they downsize when the kids move out,” said Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones in a statement.
Expansion of the downsizer scheme allows more Australians to use the equity they’ve built up in their homes to plan for retirement.
In order to contribute home sale proceeds into your super, you must:
- Have owned the home in Australia for at least 10 years, and the disposal needs to be at least partially exempt from capital gains tax;
- Have not made a previous downsizer contribution into your super from the sale or part sale of another home; and
- Provide your find with the “Downsizer contributions into super” form before or at the same time as you make the contribution.
For more information on eligibility and how to make a downsizer contribution, visit the ATO’s website.