From 1 July 2018, the Federal Government is allowing ‘Downsizer contributions’ of up to $300,000 per individual who sells their eligible current or former family home after age 65.
What are the considerations? Mainly Centrelink and taxable income.
Conclusion
The Downsizer contribution is beneficial if the Client has no age pension entitlement and is not above the $1.6mn pension limit.
However, if the Client has no age pension entitlement and no TSB space – better off retaining downsizer “dividend” outside of super and relying on zero rate/low rate thresholds.
By Michael Hallinan, Special Counsel Superannuation
