The reduced eligibility age to make a downsizer contribution from age 55 is now law
This further reduces the downsizer eligibility age, which changed from 65 to 60 from 1 July 2022.
What does this mean?
From 1 January 2023, eligible individuals aged 55 years or older can choose to make a downsizer contribution into their super fund 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.
Key dates for downsizer contributions
Eligible individuals aged 55 years or older can make a downsizer contribution from 1 January 2023
For any downsizer contributions made between 1 July 2022 and 31 December 2022, eligible individuals must be aged 60 years or older at the time of making their contribution
Prior to 1 July 2022, the eligibility age was 65 years and over.
Other important information to consider for 55-59 year olds
Individuals have 90 days from receiving the sale proceeds of their home to make a downsizer contribution. This means if an individual receives the proceeds of sale prior to 1 January 2023, they can make their contribution from 1 January 2023, as long as they are still making it within 90 days of receiving the proceeds
If 1 January 2023 falls outside of their 90-day window to make a downsizer contribution, they will not be eligible. It is unlikely the ATO would grant an extension of time in these circumstances.
To find out more about downsizer contributions, including details of full eligibility criteria, the team at Collins Hume can help. Call us in Ballina or Byron Bay on 02 6686 3000.