The new downsizer contribution allows older Australians to top up their superannuation accounts when they sell the family home.
People aged over 65 can unlock the equity in their home and, by adding to their superannuation balances, access a greater tax-free pension to improve their lifestyle in retirement.
You must be aged 65 years or older, have owned your home for at least 10 years, and the home must have been your residence for at least part of the time. You and your partner can contribute up to $300,000 each from the proceeds of the sale of the property.
A downsizer contribution can be a great strategy to unlock the wealth in the family home and increase your tax-free pension from super, but we also need to keep in mind the effect this may have on your Centrelink benefits. This is because the family home is an exempt benefit for Centrelink purposes, but your super account balance is not. Give us a call for a free consultation to see if the downsizer contribution is right for you.
More information from: Downsizer Contribution