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Boost your super and unlock the equity in your home
I'm building my wealth | | 2 min read
Thinking of making that sea change or downsizing the family home? The Downsizer Contribution scheme can help you unlock the equity in your home while boosting your superannuation.
If you’re 60 or older and you sell your family home, you can contribute up to $300,000 (per person) towards your superannuation. This applies even if your super balance exceeds the A$1.6 million cap.
The program is primarily aimed at self-funded retirees and designed to help them downsize while also freeing up the equity in their homes.
How it works
The downsizer contribution changes are intended for the family home, which means you must have owned the property for at least 10 years and used it as your primary place of residence.
More specifically, you'll need to adhere to the following rules:
- Be aged 60 or over
- The maximum contribution per person is $300,000
- If you’re a couple selling your property, both of you can contribute into your super, up to a combined maximum of $600,000
- You must notify your super fund trustee in advance if you’re making a downsizer contribution so that it is entered as exempt from the non-concessional contributions cap
- You cannot claim a personal tax deduction for a downsizer contribution
- If the property sells for less than $300,000 you can only contribute up to the property’s value, i.e. $250,000 if that’s what the property sold for
- You must make your downsizer contribution within 90 days of receiving the proceeds of the sale.
Speak to a financial planner
The Downsizer Contribution scheme is a way to top up your super even if you are unable to contribute to superannuation due to your age, work status or the amount you have in super.
That being said, it can impact your eligibility for the government Age pension, and other benefits, so it’s important to speak with a financial planner and have a thorough understanding of the costs and benefits, and how it may impact your financial position.
If you’re ready to speak with a planner you can make a booking online or call us directly on 1800 065 753.
Issued by Togethr Trustees Pty Ltd ABN 64 006 964 049, AFSL 246383 ("Togethr"), the Trustee of Equipsuper ABN 33 813 823 017 ("Equip Super"). The information contained is general advice and information only and does not take into account your personal financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should seek professional financial advice. Where tax information is included, you should consider obtaining taxation advice. Before making a decision to invest in Equip Super, you should read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product which are available at equipsuper.com.au. Financial advice may be provided to members by Togethr Financial Planning Pty Ltd (ABN 84 124 491 078 AFSL 455010) – a related entity of Togethr. Past performance is not a reliable indicator of future performance.
