Age limit lowered for empty-nester super boosts

DOWNSIZERS now have greater options for topping up their superannuation with proceeds of their home sale after the federal government expanded eligibility for a contribution scheme.

Starting this year, people aged 55 and older can send up to $300,000 to their super account after selling a property to top up their retirement savings in the final years of their working life.

Couples can double up on the scheme and may contribute a total of $600,000 from a joint-owned home.

The eligible age has stepped down from 65 and older when the scheme opened in July 2018 to 60 in July last year, before reaching 55 from January 1.

Former Prime Minister Scott Morrison announced the latest age drop ahead of last year’s federal election, which his successor Anthony Albanese pledged to match before winning government.

To be eligible for the scheme, vendors must have owned the home for at least 10 years and the sale must be at least partially exempt from the capital gains tax.

Downsizers can also only access the scheme once, while part-sales of homes are also eligible.

Eligible participants can contact their super fund to organise the contribution, which must be made within 90 days of settlement for the sold home.

The government said the scheme would have the added benefit of freeing up more housing stock for young families and other people aiming to get a foot on the ladder of the housing market.

In a joint statement, Treasurer Jim Chalmers and Assistant Treasurer Stephen Jones said the change would help more Australians set themselves up for later life.

“This is a really important way for Australians to boost their retirement savings if they downsize when the kids move out.

“Expansion of the downsizer scheme allows more Australians to use the equity they’ve built up in their homes to plan for retirement.

“Labor built Australia’s superannuation system, we are proud of it, and we’ll always fight to strengthen it.”

For more information on the scheme, visit: http://ato.gov.au/downsizing