It’s the great Australian dream to own your own home. Whilst in our younger years, when it comes to buying (or upsizing) our homes, it can be seductive to “keep up with the Joneses”. Later in life, it can be just as alluring to downsize them. Lowered costs of electricity, insurances. Less maintenance. More time to go out and travel and live out your retirement dreams.
But now there is an added bonus. If your super needs a boost, the Government has provided a little extra incentive to elect to put the dollars from the downsize back into your super fund.
From 1st July 2018, if you are 65 years or older and meet the eligibility requirements, you may be able to choose to make a Downsizer Contribution into your superannuation of up to $300,000 from the proceeds of selling your home.
One of the benefits of this type of contribution is that it does not add to the Concessional OR Non-Concessional contribution caps and can even be made where your total super balance is greater than $1.6 million.
Some other benefits include:
- A larger super balance, meaning a more comfortable retirement
- No work test or upper age restrictions on putting the money into super (generally those over age 75 cannot elect to make voluntary contributions to super)
- Both members of a couple can take advantage of the arrangement, meaning up to $600,000 can be added to your retirement nest egg
For more information on your eligibility and the relevance of this strategy to your situation, please contact one of our qualified Advisers.
Teneale Laister (CFP Professional, BCom[Fin,FP,Mgt] ADFS[FP]) is a representative of Alman Partners Pty Ltd, Australian Financial Services Licence No: 222107.
Note: This material is provided for information only. No account has been taken of the objectives, financial situation or needs of any particular person or entity. Accordingly, to the extent that this material may constitute general financial product advice, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor’s objectives, financial situation and needs. This is not an offer or recommendation to buy or sell securities or other financial products, nor a solicitation for deposits or other business, whether directly or indirectly.