Baby BoomerIn our Money Extra segment, we find out about the benefits of downsizing your home and using the proceeds of the sale to boost your superannuation.
Financial adviser Marc Bineham explains that this is a one off deal that is now open to those over sixty who have owned their own home for ten years or more and wish to downsize to something smaller. That night be an apartment, a house outside a capital city or simply a smaller home in the same area.
If you decide to sell your family home, you can direct up to three hundred thousand dollars into your superannuation fund. A couple can contribute up to six hundred thousand. If your super is low, this top up can make a substantial difference. It is a one off opportunity and you need to transfer the funds within ninety days of receiving the proceeds of the property sale. It doesn’t affect any non-concessional super contributions you make, and your employment status isn’t relevant.
On the negative side, Marc Bineham points out it might affect your pension eligibility as it will count towards your assets and income test.
Useful links –
ATO: downsizing contributions into superannuation
ATO: downsizer eligibility age reduced
Choice: downsizer super contributions, what you need to know