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More women using ‘downsizer’ contributions to boost super

More women using ‘downsizer’ contributions to boost super - Suppose you are aged 55 years or older. In that case, the downsizer contribution rules enable you to contribute up to $300,000 from the proceeds of the sale of your home to your superannuation fund (eligibility criteria apply).


In 2023-24, over 57% of people making a ‘downsizer’ contribution to super were women. The average value of the contribution was marginally higher at $262,000 versus $259,000 contributed by men.


More women using ‘downsizer’

The most likely age at which someone makes a downsizer contribution is between 65 and 69. From age 65, a downsizer contribution can be withdrawn from super if your circumstances change, even if you are still working. Those aged 55 to 64 generally won’t have access to these funds until they are at least 60 and retired.


Downsizer contributions are excluded from the existing upper age test, work test, and the total super balance rules (but the amount that can be moved to a retirement pension is limited by your transfer balance cap).


For couples, both members can take advantage of the concession for the same home. If you or your spouse meet the other criteria, you can contribute up to $300,000 ($600,000 per couple). This is the case even if one of you did not have an ownership interest in the sold property (assuming they meet the other criteria).


To be eligible to make a downsizer contribution, you do not have to buy another home once you have sold your existing one, and you are not required to purchase a smaller one—you could buy a larger and more expensive one and make a downsizer contribution if you have access to other funds. Please contact us if you would like the facts about downsizer contributions or speak to your financial adviser for advice on your personal scenario.

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