POWERED BY MOMENTUM MEDIA
More Australians now eligible to make downsizer contributions
The eligibility age to make downsizer contributions into super has expanded to allow more Australians to boost their retirement savings if they sell their home.
Starting 1 January, Australians aged 55 and over would be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of their home into their superannuation fund.
A couple aged 55 and above could make a total contribution of up to $600,000.
Previously, the scheme was open to those aged 60 or older.
This would allow more Australians to purchase, renovate, or rebuild their home without additional worries about its impact on their pension payments.
“This is a really important way for Australians to boost their retirement savings if they downsize when the kids move out,” Treasurer Jim Chalmers stated.
“Expansion of the downsizer scheme allows more Australians to use the equity they’ve built up in their homes to plan for retirement.”
Other eligibility criteria would include having not previously made a downsizer contribution from the sale of another home or part sale of their home and the home being owned by the person or their spouse for at least 10 years.
Chalmers added: “The downsizer scheme has the added benefit of freeing up housing stock for young families and individuals looking to buy a home. Labor built Australia’s superannuation system, we are proud of it, and we’ll always fight to strengthen it”.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
A research firm has given UniSuper a glowing review, praising its strong leadership and “compact team”, as well as its “creditable governance” structure.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
