Downsizing and contributing the proceeds into your super has minimal limitations, but it might affect your age pension.
I am 80 and my wife is 75. We have been retired for about 14 years, comfortably living off super, a few shares and the pension. We downsized 10 years ago and now live in a fully owned three-bedroom apartment valued recently at $2.9 million in an area and community that we love. We are both reasonably healthy and find that our lifestyle expenses have not slowed. As a result, we are having to bite into our capital for various expenses.
Under the downsizer cap you can contribute up to $300,000 each into super from the proceeds of the sale of your home, and so the amount you estimate could be fully invested if you wished. There is no upper age limit on these types of contributions. Note to be eligible for the downsizer provision you must have owned the home for 10 years and not previously made a downsizer contribution.
Currently, you can have up to $451,500 in assets excluding your home before your pension is reduced. Keep in mind this limit includes your cars, and furniture, as well as normal financial assets.. The government provides a no negative equity guarantee, so there is no possibility your family will be left with a debt that is greater than the value of your home.Typically, you draw funds from this scheme fortnightly, as a pension top-up. You can receive up to 150 per cent of the maximum pension.
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