Big win for Retirees with the newly announced ‘downsizer’ contributions

From 1 July 2018, individuals aged 65 or over may use the proceeds from the sale of an eligible dwelling that was their main residence to make superannuation contributions (referred to as ‘downsizer contributions’) up to a maximum of $300,000 per person without having to satisfy the age or gainful employment tests that usually apply.

This measure aims to provide an incentive for older Australians to ‘downsize’ their home and is expected to reduce pressure on housing affordability by freeing up stocks of larger homes for growing families. 

The new ‘downsizer contributions’ measure also provides opportunities for retirees looking to boost their retirement savings, particularly in light of the recent superannuation reforms affecting the contributions caps.

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