The kids have left home, yet you’re still living in a four bedroom house. As your retirement gets closer, you might be considering selling the family home.
The Government’s Downsizing Contributions measure allows those aged 65 years or older to contribute up to $300,000 from the proceeds of selling their home into their super account.
If you have a family home that has been owned by you or your spouse for at least 10 years, it has been your main residence for any part of that time, and you plan on selling that house, you can contribute up to $300,000 each from the sale of the house into your super accounts.
The contribution does not count towards your contribution caps, and you don’t need to meet the Work Test requirements to make the contribution.
Will this affect my age pension eligibility?
When determining eligibility for the age pension, the Government looks at all non-exempt assets and this includes superannuation. As the Downsizing Contribution needs to be put into a super account, this means it may affect your eligibility.
For more information, visit austsafe.com.au/memberhub
Source: Australian Taxation Office. Downsizing contributions into superannuation (2018).
This editorial is general information only and does not take into account your individual objectives, financial situation or needs. You may also wish to seek the advice of a qualified financial planner. Please also read the relevant AustSafe Super Product Disclosure Statement (PDS) before making a decision in relation to the product available at austsafe.com.au which summarises important information about being a member of AustSafe Super.
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