For many Australians approaching retirement, the ability to maximise their superannuation savings is a crucial financial goal. The Downsizer Strategy offers an effective way for eligible individuals to contribute extra funds to their superannuation using proceeds from the sale of their primary residence.
Eligibility Criteria
To qualify for the Downsizer Strategy, individuals must:
– Be aged 55 or older
– Have owned the property for at least 10 years
– Make the contribution within 90 days of settlement
– Ensure the property was their main residence for tax purposes
– Not have previously made a downsizer contribution
Key Benefits
Some key benefits of the Downsizer Strategy include:
– No work test requirements
– Not counted towards the non-concessional contributions cap
– Can be used even if the total super balance exceeds $1.9 million
Contribution Details
Eligible individuals can contribute up to $300,000 per person ($600,000 for couples) from the sale proceeds of their home. This provides an opportunity to boost retirement savings while also taking advantage of superannuation tax benefits.
Conclusion
The Downsizer Strategy is a powerful tool for older Australians looking to enhance their superannuation savings. It allows greater financial security in retirement without the restrictions of standard contribution caps.