Downsizer scheme opens more doors to more Australians

If you have reached the eligible age, you may be able to contribute up to $300,000 from the proceeds of the sale (or part sale) of your home into your superannuation fund. This is known as a downsizer contribution, and it is a tax-effective way to contribute the proceeds from the sale of your home into your superannuation account.

Previously, the minimum eligibility age for the downsizer contribution was 60 years old. However, as of 1 January 2023, this age will be lowered to 55 years old. This means that those aged 55 to 59 will be eligible to make a downsizer contribution of up to $300,000 into their super account, provided they meet the other eligibility criteria.

This change is a welcome development for many Australians who may be looking to downsize their homes earlier and boost their super savings. It also provides more flexibility for those who may have retired or scaled back their work hours but are not yet eligible to access their super.

At Crescent Wealth, we are committed to helping our members achieve their retirement goals, and we encourage you to consider whether the downsizer contribution is a suitable option for you. As always, we recommend seeking professional advice before making any significant financial decisions.