Since July 1, 2018, people aged 65 and older can contribute up to $300,000 from the sale proceeds of their home to super, regardless of their work status, non-concessional contribution cap space, or total super balance (TSB). These are known as downsizer contributions.
In the 2021/22 Federal Budget, the Government announced a proposed reduction in the downsizer eligibility age from 65 to 60. A Bill and separate Regulations to implement this proposal have now been finalised.
Given this upcoming change, it’s a good time to revisit the downsizer contribution rules. The nitty-gritty of the scheme is available in the wealthdigital library and via the substantial guidance material on the ATO website (see later).
The purpose of this Technical Journal is to consider the July 1, 2022, change and some of the lesser-known aspects of downsizer contributions.
