The Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures No. 1 Act 2017 commenced operation on 1 July 2018 and provides that if you are 65 years or older and meet the eligibility requirements, you may be able to contribute up to $300,000 from the proceeds of the sale of your home into your superannuation.
The eligibility requirements are:
- you are 65 years or older at the time of the contribution;
- the contribution is not more than the proceeds you received from the sale of your home up to a maximum amount of $300,000;
- you entered into the contract for sale after 1 July 2018;
- the home qualifies as your main (principal) residence;
- the home is not a caravan houseboat or other mobile home;
- you and or your spouse have owned the home for at least 10 years prior to the sale;
- you notify your superannuation fund provider in the approved form that you choose to make a ‘downsizer’ contribution prior to (or at the time of) claiming the contribution;
- you claim the contribution within 90 days of the sale; and
- you have not previously claimed a downsizer contribution.
There is no work test so you can make a downsizer contribution even if you’re still working.
You and your spouse can both make a downsizer contribution of up to $300,000 each on the sale of your home, even if the ownership of the home was only in one of your names.
The downsizer contribution is independent of any other concessional or non-concessional contributions you make which means a downsizer contribution does not impact or change any other contributions you are otherwise eligible to make. However the downsizer contribution will count towards your total superannuation balance.
If you’re over 65 and looking to sell your home, speak to one of our solicitors at JMA Legal today to see if you’re entitled to make a downsizer contribution.
This article is general information only and should not be relied on without obtaining further specific information.