The age eligibility of the downsizer contribution has been lowered to 55 from 1 July 2022. This is in line with when average Australians actually downsize, which statistically is in their late 50’s to early 60’s.
The downsizer contribution allows you to put $300k each into super when you sell your home. This is in addition to any other caps and applies even if you have more then $1.7m in super. There is no tax on the contribution in the fund. There is no upper age limit, the work test does not apply and you do not need to purchase another home.
Contributions need to be made within 90 days of receiving the proceeds of sale, which is generally the date of settlement. Of course, there is also a form to complete and give to your fund at the same time.
Potentially this could be a great opportunity to put a bit more into the tax effective super environment.
Lindsay 0413 952 180