When the downsizing bill was announced in the May 2017 Federal Budget, it was understood that only current homes could be eligible.  However, the Government has since broadened its scope to include an individual’s former home.

Linda Bruce, Senior Technical Services Manager at IOOF said: “This is an exciting development from a financial planning perspective, as it means downsizer contributions can potentially be used by a much larger group of clients than was initially thought.”

IOOF Technical Services has developed briefing tools which detail eligibility requirements under the proposed bill, and offer insights to guide its stable of approximately 1 000 advisers operating under licenses with Lonsdale, Bridges, Ord Minnett, Consultum and Shadforth.

Ms Bruce concluded, “With the right advice, the proposed bill offers a fantastic opportunity for older Australians to boost their retirement fund when selling their home.  It is crucial that advisers understand the broadened eligibility requirements to ensure their clients benefit from these incoming changes”.

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