Downsizer Contribution: Who Qualifies and What You Get
Learn how to contribute up to $300,000 from your home sale into your superannuation if you are over 55.
This scheme allows you to move money from the sale of your main home into your superannuation account.
Who it's for
This scheme is designed for individuals who are aged 55 or older and are in the process of selling their primary residence. It is intended to help people transition from a large family home into a smaller property while boosting their retirement savings.
What you get
If you qualify, you have the ability to contribute up to $300,000 from the proceeds of your home sale into your superannuation. A key benefit of this scheme is that this specific amount can be contributed outside of your usual contribution caps, allowing you to move a significant portion of your home's value into your retirement fund.
What it costs you
There are specific ownership requirements you must meet to use this scheme. You must have owned your home for a period of at least 10 years. This ensures that the benefit is directed toward long-term homeowners rather than short-term property owners.
The catch to know
The most important thing to keep in mind is the strict timeframe for your contribution. You do not have an indefinite amount of time to move the money; you only have 90 days after the settlement of your home sale to make the contribution into your super. Missing this window could mean you lose the ability to use this specific contribution method.
How to apply
- Verify that you meet the age requirement of being 55 or older.
- Confirm that you have owned your primary residence for at least 10 years.
- Complete the sale of your home and wait for the settlement to be finalized.
- Calculate your contribution amount based on the sale proceeds, up to the limit.
- Ensure the funds are deposited into your superannuation account within the 90-day window following your settlement.