Author: Emma Partenza, Manager, TAG Financial Services
Effective 1 January 2023, eligibility to make a downsizer contribution to superannuation was officially extended by reducing the minimum age from 60 to 55 years. This was as a result of the new Labor Governments federal budget last October.
The downsizer contribution allows an individual to make a one-off post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home. The reduction in age provides an opportunity for more members to be able to utilise this contribution. Members need to be mindful that the contribution may be preserved until a condition of release is met and may not be immediately accessible when contributed to superannuation.
Both members of a couple can contribute, and the contributions do not count towards non-concessional contribution caps.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2022. Please do not reproduce without the expressed written consent of the author.