From 1 July 2018, if you are planning to downsize on the family home, there may be an option to contribute proceeds from the sale to your superannuation as a downsizer contribution if you wish.
This option applies to you if:
- You are aged 65 years or older when the contribution is made,
- You make the downsizer contribution within 90 days of receiving the proceeds of sale,
- You or your spouse have owned your home for the past ten or more years, prior to the sale
- Your home has been your primary residence for CGT purposes, and
- You have not previously made a downsizer contribution from the sale of another home.
If this applies to you, you could contribute up to $300,000 from the proceeds of the sale of your home. If you have a spouse, they are also allowed to contribute up to $300,000 from the sale proceeds to their superannuation under this policy.
Eligible downsizer contributions do not count towards your concessional or non-concessional contribution caps, nor will you need to meet rules around existing maximum total superannuation balances, the work test or maximum ages for contributions. It does not, however, allow you to invest more than your transfer balance cap in super income streams.
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Things you should know
Information current as at 31 May 2018. This information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to your personal objectives, financial situation and needs having regard to these factors before acting on it. This article provides an overview or summary only and it should not be considered a comprehendsive statement on any matter or relied upon as such.
Superannuation is a means of saving for retirement, which is, in part, compulsory. The government has placed restrictions on when you can access your investment held in superannuation. The Government has set caps on the amount of money that you can add to superannuation each year on both a concessional and non-concessional tax basis. There will be tax consequences if you breach these caps. For more detail, speak with a financial adviser or visit the ATO website.
The tax implications of superannuation can impact individual situations differently and you should seek specific tax advice from a registered tax agent or registered tax (financial) adviser. This article may contain material provided by third parties derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, no company in the Westpac Group accepts any responsibility for the accuracy or completeness of, or endorses any such material. Except where contrary to law, we intend by this notice to exclude liability for this material.