From 1 July 2018, the Australian Government is introducing the Downsizing Contributions measure, which means you can contribute some proceeds of the sale of your home into superannuation.
Downsizing allows you to make an after-tax contribution of up to $300,000 into superannuation from the sale of your home which was your main residence. Couples can both contribute this amount towards super up to a maximum of $300,000 each.
This amount will not count towards your non-concessional (after-tax) contributions cap but will count towards your total super balance when it is re-calculated on 30 June at the end of the financial year. It will also count towards your transfer balance cap that is currently $1.6 million (this cap applies when you move your super into the retirement phase). You can only make one Downsizing Contribution from the sale of your main residential home.
To qualify for downsizing, you must meet all of the following criteria:
You will need to complete the downsizer contribution form from www.ato.gov.au that will be available from 1 July 2018. Please provide it to us prior to or when making your contribution. By submitting this form you are confirming that you have met all the eligibility requirements.
The total amount of the downsizer contribution from the sale of your home can be up to a maximum of $300,000 and it must be made within 90 days of receiving the proceeds of the sale.
Before taking advantage of the Downsizing provisions you should seek professional advice before making a decision.
For more information please refer to https://www.ato.gov.au/Individuals/Super/Super-housing-measures/Downsizing-contributions-into-superannuation/
If you have any questions, please contact us on 1300 LGSUPER (1300 547 873) between 8.30am and 5.00pm, Monday to Friday.