Since 1 July 2018, those aged 65+ are able to use the proceeds from the sale of their home to make a non-tax-deductible downsizer contribution of up to $300,000 each (up to $600,000 per couple) into superannuation.
Some of the finer details are:
- No work test or age limits apply, however the person must be over age 65.
- The home (excluding houseboats, caravans and mobile homes) must have been owned by the person or their spouse for 10 years or more prior to disposing of it. In addition, all or part of any gain or loss from the sale must have qualified (or would have qualified) for the main residence capital gains tax (CGT) exemption.
- The exchange of contracts for the sale must occur on or after 1 July 2018. Furthermore, the contribution must be made within 90 days of the date of the disposal (e.g. date of settlement); however, an extension may be granted in certain circumstances.