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    Next Steps Plus

    Autumn 2018

    Next Steps Plus

    Autumn 2018
    NextStepsNextsteps

Downsize your home to boost your super
Downsize your home to boost your super

From 1 July 2018, if you’re over 65 and decide to sell the family home you’ve living in for over 10 years, you’ll be able to contribute up to $300,000 of the proceeds into your super.

This is over and above the existing contributions caps however the transfer balance cap rule ($1.6 million into certain retirement income streams) will still apply.

There are other conditions to this which can be found on the Treasury website.
From 1 July 2018, if you’re over 65 and decide to sell the family home you’ve living in for over 10 years, you’ll be able to contribute up to $300,000 of the proceeds into your super.

This is over and above the existing contributions caps however the transfer balance cap rule ($1.6 million into certain retirement income streams) will still apply.

There are other conditions to this which can be found on the Treasury website.
Some regulatory rules need to be updated to allow this as existing super rules mean that over 65’s need to pass a work test in order to contribute into super. We expect this to be updated to allow for the downsizing rule in time for the start of the next financial year when the legislation takes effect. We’ll keep you updated should anything change.

If you are a couple, both of you will be able to contribute up to $300,000 into your super following the sale of your property.

And while this can increase your retirement income, it may affect your Centrelink entitlements, so its worth seeking advice.

Call us on 1300 366 216 or book an appointment
Some regulatory rules need to be updated to allow this as existing super rules mean that over 65’s need to pass a work test in order to contribute into super. We expect this to be updated to allow for the downsizing rule in time for the start of the next financial year when the legislation takes effect. We’ll keep you updated should anything change.

If you are a couple, both of you will be able to contribute up to $300,000 into your super following the sale of your property.

And while this can increase your retirement income, it may affect your Centrelink entitlements, so its worth seeking advice.

Call us on 1300 366 216 or book an appointment