Complex Superannuation Strategies

Downsizing Measure

  • The contribution cannot be greater than the person’s share of the sale proceeds, up to $300,000 each. For example, if a couple sell their family home for $500,000; the couples combined contributions cannot exceed $500,000 in total.
  • The contribution isn’t counted towards a person’s non-concessional cap or subject to the total superannuation balance test, however, it does increase the total superannuation balance, which can limit their ability to contribute in future years.
  • The total amount a person can transfer to a retirement phase pension is still limited to the Transfer Balance Cap.
  • The Downsizing Measure may only be used once (i.e. on one home) and despite the name, there’s no requirement to purchase another home nor is there a restriction on purchasing a more expensive home.