Downsize your home and BOOST YOUR SUPER

As of July 1, older Australians may be able to boost their super by selling their main residence.

The “downsizer contribution” scheme allows individuals aged 65 years and over to make an after-tax super contribution of up to $300,000 if they or their spouse owned their home for 10 years. For couples, contributions can be up to $600,000 ($300,000 each).

The idea is that eligible Australians can move out of homes that no longer meet their needs and put their money into super.

It’s a positive move, and a welcome one for some retirees whose boosted super balance could provide a comfortable retirement rather than a modest one.

Also welcome is the fact that downsizer contributions don’t depend on work status.

Plus, contributions can be made from the proceeds of almost any house type (besides a caravan, houseboat or mobile home).

But this is super, so there are some eligibility criteria. Besides needing to own the home for 10 years, downsizer contributions must be made within 90 days after settlement.

Downsizer contributions are also not exempt from the Age Pension means test, so they may affect Centrelink benefits.

Other conditions apply, so we recommend you discuss the downsizing rules with our award-winning advice team – or if you have any other questions about your super or retirement. There’s no extra charge for VicSuper members. And we also welcome non-members for a noobligation chat too. It’s all part of the great value we provide.

Talk to your local VicSuper adviser in Geelong, Warrnambool or Ballarat.

Phone us on 5226 5500, or head to vicsuper.com.au/advice.

This advice has been prepared without taking into account your objectives, financial situation or needs. You should therefore consider the appropriateness of the advice in light of your individual circumstances before acting on the advice.