Are you considering, or currently in the process of, selling your home? If so, we would strongly encourage you to speak to one of our advisors before making any final decisions as you could be eligible to contribute up to $300,000 of the sale proceeds to your superannuation fund.
This new ‘downsizer’ contribution scheme comes into effect from 1 July 2018 and allows those eligible to boost their superannuation savings, without the need to satisfy normal superannuation contribution eligibility criteria (including the work and total super balance tests).
- Boost your savings in superannuation
- You do not have to make any subsequent home purchase, and you can move into any living situation suitable for you
- Lump sum withdrawals can be made which are received tax-free
- If applicable, your spouse can also make a downsizer contribution, increasing the potential contribution to a maximum of $600,000 combined (as long as this doesn’t exceed your home’s sale price)
- You must be aged 65 or over from 1 July 2018
- You must have owned your home for at least 10 years and it must meet the test for a ‘main residence’ exemption under CGT rules (although you do not have to be currently living in it)
- The contract for sale has to be entered into on or after 1 July 2018 and the contribution must be made within 90 days of the sale date
- The downsizer contribution can only be made once
If you would like more information or are considering selling your home, please contact your Partners Wealth Group advisor today.