Issues to consider with $600k ‘Downsizer’ strategy

Wed, 29 Nov 2017 20:45:40 +0000

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

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Issues to consider with $600k ‘Downsizer’ strategy

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.

Conclusion