info@remaccounting.com.au
  • (03) 8797 5399
  • Recent News – REM Accounting
    • Home
    • Our Difference
    • Services
      • Accounting & Tax
      • Self-Managed Superannuation Funds
      • Business Advisory
      • CFO Advisory
    • Resources
      • Recent News
      • Useful Links
    • Contact Us

    In’s and out’s of the super downsizer scheme

    By admin • 29 May 2019 • Super

    Under the super downsizer scheme, eligible individuals that are 65 years and older may be able to make a contribution into their superannuation of up to $300,000 from the proceeds of selling their family home. This scheme came into effect on 1 July 2018 as one of several measures announced in the May 2017 Federal Budget.

    Benefits to downsizer contributions:

    • It can provide a way to boost your super balance. For those who may not have saved enough to fund their retirement, tax-free downsizer contributions can be a good opportunity to top up their already existing savings.
    • No work test applies. This test requires that taxpayers aged 65-74 who wish to make voluntary contributions must be employed for at least 40 hours within a 30-day period. By removing this requirement, older Australians who no longer work significant hours will still be able to add large sums to their super.
    • There are no contribution caps, as concessional and non-concessional contribution caps do not apply.
    • Downsizer contributions aren’t subject to the $1.6 million total super balance restriction.
    • For couples, both spouses are able to take advantage of downsizer contribution. This means that up to $600,000 per couple may be contributed towards their super.

    Other considerations to be aware of include:

    • Contributions must be made within 90 days of receiving the proceeds of a sale.
    • The sold property must have been owned for at least 10 years and must have been your main place of residence at some point in time.
    • The property must be in Australia and excludes houseboats, caravans and mobile homes.
    • Downsizer contributions are not tax-deductible.

    More rules may apply to various situations, and contributions that do not meet the downsizer contribution eligibility requirements may incur penalties from the ATO. For further information and advice on other implications to the super downsizer scheme that may affect you, consult your professional advisor.

    Tweet
    0
    Risk management strategies for investors
    Reducing errors when claiming business expenses

    About the Author

    admin

    You Might Also Like

    • Advantages and disadvantages of home reversion

      Advantages and disadvantages of home reversion

    • What you need to know about the transfer balance cap

      What you need to know about the transfer balance cap

    • Review your supers investment options

      Review your super’s investment options

    • Pension from your SMSF fund

      Pension from your SMSF fund

    No Comments

      Leave a Reply Cancel Reply

      You must be logged in to post a comment.

      Recent Posts

      • Spotting unauthorised and mistaken transactions
      • What you need to do before you buy an existing business
      • How does employer liability change with remote working conditions?
      • Advantages and disadvantages of home reversion
      • Do you need to be paying luxury car tax?

      Archives

      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018

      Categories

      • Business
      • Legal
      • Money
      • People
      • Super
      • Tax
      • Web

      RECENT COMMENTS

        Subscribe & Follow

        Subscribe to our newsletter and keep up to date with the latest news from REM Accounting & Advisory

        REM accounting logo
        • Accounting & Tax
        • Self-Managed Superannuation Funds
        • Business Advisory
        • CFO Advisory

        Association LogoAssociation Logo
        Copyright © 2018 REM Accounting and Advisory | Privacy Policy

        Liability limited by a scheme approved under Professional Standards Legislation