In another recent legislative change, the eligibility age to make a downsizer contribution into superannuation has been reduced to 55 from 1 January 2023.
This further reduces the downsizer eligibility age, which changed from 65 t0 60 from 1 July 2022.
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 ($600,000 per couple) from the proceeds of selling their home that has been held for at least 10 years and qualifies for at least a partial main residence exemption.
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 an 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 any downsizer contribution. This means if any individual receives the proceeds of sale prior to 1 January 2023, so long as they are still making it within 90 days of receiving the proceeds.
Unlike most other contributions into superannuation, there is no upper age limit for being eligible to make a downsizer contribution. Even a 95 year old could make a downsizer contribution, and there is no need to satisfy the work test!