How does it work?
Those over 65 can make a non-concessional contribution to super of up to $300,000 from the sale of one principal residence, which has been owned for more than 10 years. Couples will be able to contribute $300,000 each. The contribution will not count towards the $1.6 million balance cap or the non-concessional contribution cap, which limits the amount of super that can be transferred into retirement phase. There is no maximum age or work test rules.
Where to Go Next?
This is an excellent opportunity to boost your available funds in retirement and to use your funds to create a whole new lifestyle. Considering life on the road in your own motorhome? Or moving in with a friend or loved one? Buying a new home is not a requirement. In fact, you may even buy a larger home — perhaps enjoy the company of new roommates by renting out rooms. While this is an incentive geared towards people in the downsizing phase, there is no limitation on how you choose to use the proceeds of the sale of your family home.
Westlawn Tip: Your super contribution must be made within 90 days of receiving the proceeds of sale, which is usually the date of settlement.
Westlawn Tip: Most super funds will accept downsizer contributions — before making big decisions, contact your Adviser to be sure that they do.
Eligibility: Familiarise yourself with the ATO’s basic requirements that you need to meet to qualify for the downsizer measure.
Please call your Westlawn advisor with questions — about strategising your application and making the most of this opportunity to fund the retirement that you’re dreaming of.
Call us on 1300 WESTLAWN (1300 937 852).
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