A generous opportunity is available from 1 July 2018 regarding extra contributions that can be made into Superannuation.
It is called the “downsizer contribution” and allows a contribution of up to $300,000 per individual or $600,000 for a married couple into Superannuation, from the proceeds of selling your home. This is in addition to the existing caps that apply.
To be eligible you must meet all of the following conditions:
1) You must enter into a contract to sell your main residence after 30 June 2018;
2) You must have owned the home for at least 10 years;
3) The home must have been your main residence at some point in time over the time you owned it and you are eligible for either the full or partial main residence exemption;
4) Each individual making the contribution must be 65 or older when the contribution is made;
5) The contribution must be made to a Superannuation Fund within 90 days of settlement of the property and the Fund must be provided with a form indicating that the downsizer contribution is being made.
It does not matter if you have retired or have exhausted all other available caps. It is a special contribution relating to “downsizing” your home.
It is interesting to note, that there is no condition involved in actually downsizing your home to (say) a less expensive or smaller home. All that is required is the above conditions are met.
If you think you may qualify and you are considering selling your home after 1 July 2018 please feel free to contact us to assist you on determining if you are eligible.