DOWNSIZERS now have the option of topping up their superannuation with proceeds of their home sale after the Federal Government expanded eligibility for a contribution scheme.<\/p>\n
Starting this year, people aged 55 and older can deposit up to $300,000 into their super account after selling a property to top up their retirement savings in the final years of their working life.<\/p>\n
Couples can double up on the scheme and may contribute a total of $600,000 from a joint-owned home.<\/p>\n
The eligible age has been lowered from 65 and older when the scheme opened in July 2018 to 60 in July last year, before reaching 55 from 1 January 2023.<\/p>\n
Former Prime Minister Scott Morrison announced the latest age drop ahead of last year\u2019s Federal election, which his successor Anthony Albanese pledged to match before winning government.<\/p>\n
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.<\/p>\n
Downsizers can also only access the scheme once, while part-sales of homes are also eligible.<\/p>\n
Participants need to contact their super fund to organise the contribution, which must be made within 90 days of settlement for the sold home.<\/p>\n
A statement from the Federal Government said the scheme would have the added benefit of freeing up more housing stock for young families and other people aiming to purchase a property.<\/p>\n
\u201cThis is a really important way for Australians to boost their retirement savings if they downsize when the kids move out,\u201d the statement said.<\/p>\n
\u201cExpansion of the downsizer scheme allows more Australians to use the equity they\u2019ve built up in their homes to plan for retirement.<\/p>\n
\u201cLabor built Australia\u2019s superannuation system, we are proud of it, and we\u2019ll always fight to strengthen it.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
DOWNSIZERS now have the option of 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 deposit up to $300,000 into their super account after selling a property to top up their retirement savings in the […]<\/p>\n