Lower age limit for Downsizer Contibutions
From 1 January 2023 the lower age limit for making a downsizer contribution into super reduced from 60 to 55, with no upper age limit. This gives you more flexibility to top up your money in super and potentially benefit from compounding returns to give you more money to live on when you retire.
Downsizer contributions allow you to make a one-off payment into super from the sale of your residential property, provided it has been your (or your spouses) main residence at some point in time. It’s important to note that you won’t be able to make the contribution to your SASS account^. You will need to open an account with another super fund and make the downsizer contribution to that fund.
You can contribute up to $300,000 per individual (a total of $600,000 for a couple) into super from the proceeds of sale from your home. When you make this payment, it won’t count towards your contribution caps and isn't impacted by total super balance contribution restrictions, but it will be included in your transfer balance cap (the total amount of super you can transfer into a tax-free retirement account).
It’s important to note that there is no special Centrelink asset test exemption, so downsizing your home may have an impact on your age pension eligibility.