Exciting News: Enhanced Eligibility for Downsizer Contributions
The downsizer contribution concession was initially introduced to empower older Australians who are selling an eligible dwelling. This concession allows them to make additional contributions to their superannuation fund, enhancing their financial prospects as they transition into retirement.
In essence, eligible individuals can leverage the downsizer contribution concession to make non-deductible contributions of up to $300,000 individually or up to $600,000 as a couple, utilising proceeds from the sale of their main residence.
The allure of this concession lies in its unique attributes. Notably, the downsizer contribution does not count towards an individual’s standard contribution caps. This makes it an attractive avenue to augment superannuation entitlements without encountering traditional limitations.
Remarkably, the total superannuation balance restriction does not apply to the downsizer contribution. This means that irrespective of an individual’s total superannuation balance, they can tap into this opportunity to enrich their retirement funds. Furthermore, the downsizer contribution is exempt from inclusion in the assessable income of the receiving fund, providing added financial flexibility.
It’s important to highlight that there are specific eligibility criteria that must be met for a downsizer contribution to be executed successfully. Seeking professional advice tailored to your circumstances is paramount in navigating these requirements effectively.
Notably, the Government has amplified access to this valuable concession. Starting from 1 January 2023, the minimum age requirement for the downsizer contribution has been lowered from 60 to 55. This means that individuals aged 55 to 59, who were previously excluded due to age constraints, can now seize this opportunity if all eligibility criteria are met.
We understand the significance of these changes for your financial journey. Our experts are prepared to provide personalised guidance that aligns with your retirement aspirations. Reach out to us today to explore how the expanded downsizer contribution eligibility could shape your finances.
Contact your Simmons Livingstone advisor on 1800 618 800 or via email at admin@simmonslivingstone.com.au.
