Downsizer Superannuation Contributions
Recent changes to superannuation rules provide an opportunity for over 65’s to contribute sale proceeds from their main residence into superannuation, up to a maximum $300,000 per person.
The key benefit of this is the ability to invest sale proceeds in the concessionally taxed super environment with over age 65, without the need to meet the work test or superannuation caps.
However, retirees need to also consider the impacts on their social security entitlements and possibly aged care fees, as money invested into superannuation under these rules are assessed as financial investments.
Eligibility is subject to a number of criteria, and the list below highlights some of the main points that need to be satisfied:
- The contract for sale must be on or after 1 July 2018;
- The person must be 65 or over at time of the contribution;
- The contribution must be sourced from the proceeds of the sale of one qualifying main residence;
- There has been an ownership interest in the main residence for at least 10 years;
- The contribution is made within 90 days of the sale of the property;
Selling your home as part of your retirement strategy is a big deal and requires careful consideration and planning. Rob Dugdale and the team at MAS Wealth Management can advise if you qualify for a downsizer contribution, and the impact that this and other decisions may have on your retirement lifestyle. Contact us today on (07) 5537 7818.
This communication of information in written, verbal, electronic, physical or other form (hereafter referred to as the ‘publication’) is provided for your information only and must not be construed as financial, investment, legal, taxation, or any other form of advice. You must seek professional financial, investment, legal, taxation or other advice as necessary before making any decision of a nature directly or indirectly related to the subject of this publication. Rob Dugdale is an Authorised Representative of Total Financial Solutions Australia Ltd AFSL 224954.
