From 1 January 2023, people aged 55 and older can make a non-concessional (post-tax) superannuation contribution of up to $300,000 from the proceeds of selling their home. Existing contribution caps and restrictions will not apply to the downsizer contribution.
What are the eligibility requirements to make a downsizer contribution?
To make a downsizer contribution to Netwealth you/your client must meet the following requirements:
- From 1 January 2023, 55 years old or older
- From 1 July 2022, 60 years old or older
- From 1 July 2018, 65 years old or older
There is no maximum age limit.
In addition, other eligibility criteria you/your client must satisfy are:
- The amount you are contributing is from the proceeds of selling your home where the contract of sale exchanged on or after 1 July 2018
- Your home was owned by you or your spouse for 10 years or more prior to the sale. The ownership period is calculated from the date of settlement of purchase to the date of settlement of sale
- Your home is in Australia and is not a caravan, houseboat or other mobile home
- The proceeds (capital gain or loss) from the sale of the home are either exempt or partially exempt from capital gains tax (CGT) under the main residence exemption, or would be entitled to such an exemption if the home was a CGT rather than a pre-CGT (acquired before 20 September 1985) asset
- You make your downsizer contribution within 90 days of receiving the proceeds of sale, which is usually at the date of settlement
- You have not previously made a downsizer contribution to your super from the sale of another home.
For a full listing of the eligibility criteria, please refer to the ATO website.
If you are eligible, what do Netwealth need?
You will need to complete and submit the ATO ‘Downsizer Contribution into Super Form’ and make your deposit into your account. Please email Netwealth contact@netwealth.com.au upon making your deposit to ensure your deposit is allocated as a downsizer contribution.