Downsizer contribution eligibility age reduced

Reduced eligibility age to make downsizer contributions now law

The eligibility age for making downsizer contributions has been further reduced to 55 years old.

Key points

  • The change took effect on 1 January 2023
  • From this date, individuals who are 55 years or older and meet the eligibility criteria can contribute up to $300,000 ($600,000 for couples) to their super fund from the proceeds of selling their home.

For contributions made between 1 July 2022 and 31 December 2022, individuals must be 60 years or older at the time of contribution. (Before 1 July 2022 the eligibility age was 65 years or older.)

For individuals aged 55 to 59, there are some important considerations to keep in mind:

  • A 90-day time limit from receiving the sale proceeds of the home to making a downsizer contribution
  • If sale proceeds were received prior to 1 January 2023, individuals can make the contribution from that date, as long as this is done within 90 days
  • However, if 1 January 2023 falls outside of the 90-day window, individuals will be ineligible and the ATO is unlikely to grant an extension in these circumstances.

For more information on downsizer contributions, including complete eligibility criteria, please do not hesitate to contact us on 03 9851 9000.

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