A new calendar year often brings legislative changes that understandably don’t receive much attention. One of these is the change in eligibility around downsizer contributions.

For those unaware, these are contributions that can be made into superannuation from the proceeds of the sale of your main residence. What makes this appealing is that they don’t fall under your annual contribution caps and up to $300,000 per person can be made. For those without enough superannuation, this can provide a much needed injection.

While there is a criteria to be met, the main hurdle is that traditionally you needed to be over 65 year of age. This was reduced to 60 from 1 July 2022 and now from 1 January 2023, the eligible age is now 55 with no maximum age limit.

It is also worth noting that if the property is only owned in one spouse’s name, the spouse who doesn’t have any ownership will also be able to make a downsizer contribution. The property will also need to have been owned for at least ten years prior to the sale.

This provides real opportunity for those looking to supercharge their super while still working. In order to take advantage of this, you also need to make sure the contributions are made to your superannuation within 90 days of receiving the proceeds of sale.

Before doing any of this, you should always seek independent financial advice. Please contact us to speak with one of our advisors.