Downsizer contributions are voluntary superannuation contributions that have been targeted towards older Australians looking to downsize from their long-term family home.
They can help you significantly increase the account balance of your superannuation account, as they provide the opportunity for tax-free payments that can total up to $300k per person.
Australia’s downsizer contributions to super accounts were introduced as part of the 2017-18 budget in an effort to relieve some of the pressure on housing affordability. It aimed to free up housing availability through encouraging older homeowners to downsize, moving into houses more suited to their needs once kids have moved out.
So, are you eligible? Here are the conditions that you must meet in order to make a downsizer contribution:
If you meet all these conditions, then you are eligible to make a downsizer contribution to your superannuation account.
There are a number of reasons that make downsizer contributions an exciting opportunity for older Australians. It varies a great deal from other voluntary superannuation contributions, a lot of which have restrictive measures placed on them:
You may want to take the time to consider the following before committing to making a contribution of this type:
Everybody’s financial circumstances are different, and this advice is so we recommend you consult with an expert before you decide on making a contribution such as this.