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”.
