The 2017 Federal Budget contained a downsizing measure that allows individuals aged 65 or over to make a non-concessional contribution of up to $300,000 from the proceeds of selling their home.
By reducing the barriers to downsizing, the Government is encouraging those who meet these requirements to downsize from homes that no longer meet their specific circumstances thereby potentially freeing up houses for young families entering the housing market. At the same time this measure presents individuals the opportunity to access capital that was previously held in the family home, in a tax concessional environment.
Since 1 July 2018, those 65 years of age and over have been able to make a downsizing contribution into their superannuation, up to a maximum of $300,000 and no greater than the total proceeds from the sale of their home.
This downsizing measure applies to the sale of a principal place of residence that has been held for a minimum of 10 years.
For a couple, both parties can take advantage of this measure, effectively meaning $600,000 per couple will be able to be contributed to superannuation.