News
During the 2022 Federal election, the government announced it would support a reduction to the downsizer eligibility age to 55years. Confusion ensued for some, as this reduction is not yet law.
Instead, from 1 July 2022, people aged 60 years and over will be eligible to make downsizer contributions of up to $300,000 per person or$600,000 per couple from the sale proceeds of their home into a complying superannuation fund.
Off the back of the aforementioned election confusion, it’s important to note that any contributions made from members who are 55-59 years old will be ineligible to be treated as downsizer contributions. If you fall into this age bracket and have made contributions under the guise of a downsizer contribution, they will instead need to be reported as personal contributions.
Sadly for some, the result may mean you could exceed your non-concessional contributions cap. Although this is not ideal, it’s not the end of the world yet and you should discuss the situation with the Attune team to ensure the outcome fits your goals and superannuation strategy before going further.
If however, you are 60 or older and you have or are looking at making downsizer contributions (which are eligible), they won’t impact or count towards your concessional or non-concessional super contribution caps.
Lastly, the downsizer contribution is a once-off option that can not be applied to the sale of any residences in the future.
1. You must be 60 years of age or older
2. You must sell a property that is located inAustralia
3. You must have owned the property for at least 10years
4. The proceeds from the sale of your home must be either exempt or partially exempt from CGT under the main residence exemption (details can be found here).
Making large contributions to your superannuation (SMSF or not), should always be discussed with your accountant and indeed your fund first. The Attune team has extensive experience with superannuation and SMSFs and are in the perfect position to give you sound, strategic advice that help you achieve your future goals.
To discuss contributions and putting the right processes and structure in place for your super, contact the Attune team on 1300 866 133 or send us an email to start the conversation.
