{"id":1609,"date":"2018-11-12T15:01:03","date_gmt":"2018-11-12T15:01:03","guid":{"rendered":"https:\/\/ph.trdemo.com.au\/rogersonkenny\/?p=1609"},"modified":"2024-12-12T20:23:36","modified_gmt":"2024-12-12T09:23:36","slug":"downsizer-contributions","status":"publish","type":"post","link":"http:\/\/ph.trdemo.com.au\/rogersonkenny\/downsizer-contributions\/","title":{"rendered":"Downsizer Contributions"},"content":{"rendered":"[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]\r\n

From 1 July 2018, Australians aged 65 years of age or older are able to make a $300,000 \u201cdownsizer contribution\u201d into their superannuation fund, per person, from the sale proceeds of their family home.<\/strong><\/em><\/p>\r\n\r\n

This was a 2017-18 budget measure as part of the package of reforms to reduce pressure on housing affordability in Australia and became law on 13 December 2017.<\/p>\r\n\r\n

The downsizer contribution is not a non-concessional contribution and will not count toward your contribution caps. The downsizer contribution can still be made even if you have a total super balance greater than $1.6m. It also only affects your total super balance when your balance is re-calculated at the 30th<\/sup> June to include all of your other contributions.<\/p>\r\n\r\n

If you sell your home, are eligible and choose to make a downsizer contribution, there is no requirement for you to purchase another home.<\/p>\r\n\r\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][divider line_type=”Full Width Line” line_thickness=”5″ divider_color=”extra-color-3″ custom_height=”10px”][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]\r\n\r\n

To make a downsizer contribution to superannuation, you need to:<\/h3>\r\n\r\n\r\n

\u00a0– Be 65 years old or older at the time you make a downsizer contribution
\u00a0– Your contribution is from the proceeds of selling your home
\u00a0– You haven\u2019t accessed the downsizer contribution for another property
\u00a0– The contract date is on or after 1 July 2018
\u00a0– Your home was owned by you or your spouse for 10 years or more prior to sale
\u00a0– Your home is in Australia and is not a caravan, houseboat or other mobile home
\u00a0– The proceeds are either fully or partially exempt from capital gains tax under the main residence exemption
\u00a0– You have provided your super fund with a \u2018Downsizer contribution into super\u2019 form either at time of contract or before making your downsizer contribution
\u00a0– You make your downsizer contribution within 90 of receiving the proceeds of sale
\u00a0– The contribution can\u2019t be greater than the sale proceeds of your house<\/p>\r\n\r\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][divider line_type=”Full Width Line” line_thickness=”5″ divider_color=”extra-color-3″ custom_height=”10px”][\/vc_column][\/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overflow=”visible” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_direction_desktop=”default” column_element_spacing=”default” desktop_text_alignment=”default” tablet_text_alignment=”default” phone_text_alignment=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_backdrop_filter=”none” column_shadow=”none” column_border_radius=”none” column_link_target=”_self” column_position=”default” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” animation_type=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text text_direction=”default”]\r\n

A few considerations:<\/h3>\r\n\r\n\r\n

\u00a0– It can be an opportunity to boost your super and you don\u2019t actually have to downsize\u2026 you could buy a more expensive or larger house
\u00a0– You don\u2019t need to buy a new home
\u00a0– There is no age limit and you don\u2019t need to meet the work test
\u00a0– Contributions will count toward age pension tests \u2013 income and assets tests
\u00a0– Agent fees, stamp duty, advertising, moving costs, etc can be substantial and should be considered prior to making any decisions on using the downsizing contribution measure<\/p>\r\n\r\n\r\n

\u00a0<\/h6>\r\n\r\n\r\n

The above information is general information only and should not be considered financial advice. We don\u2019t know you or your circumstance and strongly suggest seeking appropriate, accredited financial advice before making any decision. This is a guide only.<\/small><\/em><\/p>\r\n\r\n

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