Downsizer super contributions
If you are aged 55 or older, you may be able to contribute up to $300,000 from the proceeds of selling your home into your superannuation fund as a downsizer contribution.
This type of contribution can help you boost your retirement savings without impacting your regular contribution caps.
What is a downsizer contribution
A downsizer contribution is a non-concessional (after-tax) contribution made from the sale or part-sale of your home. It does not count towards your non-concessional contribution cap and will not affect your total superannuation balance until it is recalculated at the end of the financial year.
However, downsizer contributions do count towards your transfer balance cap. The transfer balance cap applies when you move your super savings into retirement phase and can affect your eligibility for the age pension. Consider seeking independent financial advice about the impact on age pension asset tests before making a contribution.
Eligibility requirements
To make a downsizer contribution, you must meet all of the set conditions. Check first with Omnis’ SMSF Specialist regarding your eligiblity.
Contribution limits
You can contribute up to $300,000 per person. For couples, each spouse can make a contribution of up to $300,000, but the combined total cannot exceed the total sale proceeds of the home.
Invalid contributions
If your contribution does not meet eligibility requirements, your super fund must assess whether it can be accepted as a personal contribution under their acceptance rules.
- If accepted as a personal contribution, it will count towards your non-concessional contributions cap
- If it cannot be accepted, the contribution will be returned to you.
Penalties apply for making a false or misleading declaration of eligibility.
Talk with Omnis in West Perth to see if a downsizer contribution could help you grow your super and strengthen your retirement plan. See further examples on the ATO website.
