Australian Government will reduce eligibility age for downsizer contributions from 65 to 60 years old
As part of the 2021–22 federal Budget, the Australian Government announced it will reduce the eligibility age for downsizer contributions from 65 to 60 years old.
This measure has now become law, with the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Businesses Invest) Bill 2021 receiving royal assent on 22 February 2022.
What does this mean?
This means from 1 July 2022, eligible individuals aged 60 years or older can choose to make a downsizer contribution into their superannuation of up to $300,000 per person ($600,000 per couple) from the proceeds of selling their home. There are no changes to the remaining eligibility criteria.
For contributions made prior to 1 July 2022, eligible individuals must still be aged 65 years or older at the time of making their contribution.
What is the purpose of downsizer contributions?
The downsizer measure began on 1 July 2018, increasing the flexibility of older Australians to contribute to their super. This allows eligible individuals to contribute up to $300,000 from the proceeds of the sale of their home, without it impacting their contributions caps.
To find out more about downsizer contributions and for the full eligibility criteria, contact the award-winning SMSF team at Intuitive Super on 1300 856 064.