To help free up the housing market of ‘family homes’ and boost the retirement savings of older Australians the federal government has introduced a new measure that, that from 1 July 2018, gives older Australians the opportunity to contribute proceeds from selling their home.
The Downsizing contribution is in addition to the current voluntary contributions people can make to their super, and is available to Australians aged 65 and over. Individuals will be able to contribute up to $300,000 post-tax, and couples $600,000, from the sale of their house into their super, as long as the house they sold was their primary place of residence for a least 10 years.
The downsizing contributions will not count towards the contributions cap, except for the $1.6million transfer balance cap which will apply when money is moved into a retirement phase super account.
If you are considering taking advantage of the downsizing contribution, please seek financial advice because it may affect your super and/or pension.
At Vision Super we look forward to helping you on your way to acheiving your retirement goals.