Just because you can do this from 55 doesn’t mean you should. Depending on your circumstances, you could be better off waiting.
Before January 1, you had to be 60 or older. And when the former Coalition government mixed housing affordability with superannuation policy and introduced this contribution in 2018, the minimum age was 65.
But just because you may be able to make a downsizer contribution – now at a younger age – doesn’t necessarily mean you should. Depending on your circumstances, you could be better off waiting. This is where a downsizer contribution comes in handy as it gives you the opportunity to boost your super even if you’re otherwise ineligible to contribute. It is not treated as a non-concessional contribution and therefore doesn’t count towards this cap and can be made regardless of how much you have in super.Don’t let the name fool you. A downsizer contribution may be made where you’ve sold your home to buy a bigger one – if in fact you buy another property at all.
Each member of a couple may be eligible to make a downsizer contribution even if only one is on title. But the spouse not on title must still meet the requirements, including having lived in the property.The contribution, which must be made within 90 days of change of legal ownership, is the lesser of the sale proceeds or $300,000 per person. So, a couple may be able to contribute up to $600,000.
So, if you’ve sold your home and make a downsizer contribution now, you will be unable to make another one in the future when it could really be useful because your TSB at that time prevents you from contributing.
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