From 1 July 2018, if you are 65 years or older you may be able to make a contribution into superannuation of up to $300,000 (per individual) from the proceeds of selling your home.
The government has placed caps on how much you can contribute into superannuation, and how much you can have in pension phase in your superannuation fund. The downsizer contributions do not count toward any caps. You cannot claim a deduction for the contribution, and it can only be made for the sale of one home. That is, you cannot access the concession for the sale of a second home.
There are a few conditions before the contribution is allowed, as set out below:
You (or your spouse) must have owned the home for 10 years or more prior to the sale and the sale (date of signing the contract) must occur after 1 July 2018.
The contribution cannot be greater than the total proceeds of the sale of the home. The home must be (or have been) your sole and principal residence.
The contribution must be made within 90 days of the date of settlement of the property and you must complete a Downsizer Contribution into Super form.
The contribution can still be made if your total super balance is greater than $1.6million. It forms part of the tax-free component of your superannuation benefit.
Should you think that this could be an option for you (ie you are considering selling your home in the near future), please contact our office to make an appointment to discuss these measures.